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Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2012
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
Asset Retirement Obligations
 
Asset retirement obligations (ARO) consist primarily of estimated costs of dismantlement, removal, site reclamation and similar activities associated with our oil and gas properties. Changes in asset retirement obligations were as follows:
 
Year Ended December 31,
 
2012
 
2011
(millions)
 
 
 
Asset Retirement Obligations, Beginning Balance
$
377

 
$
253

Liabilities Incurred
43

 
23

Liabilities Settled
(112
)
 
(24
)
Revision of Estimate
102

 
105

Accretion Expense
22

 
20

Other
(30
)
 
—

Asset Retirement Obligations, Ending Balance
$
402

 
$
377



For the year ended December 31, 2012, liabilities incurred include $6 million for onshore US development, $8 million for deepwater Gulf of Mexico, and $30 million for offshore Israel. Liabilities settled in 2012 include $20 million related to non-core onshore US assets sold, $55 million related to North Sea assets sold, and $34 million related to the Leviathan-2 appraisal well, offshore Israel. Revisions relate primarily to changes in estimated costs for future abandonment activities and include $54 million for onshore US, $6 million for deepwater Gulf of Mexico, $26 million for offshore Israel, and $16 million for offshore China. Other includes North Sea ARO liabilities transferred to liabilities associated with assets held for sale. See Note 2.  Additional Financial Statement Information and Note 3.  Acquisitions and Divestitures.

For the year ended December 31, 2011, liabilities incurred were primarily due to the Marcellus Shale asset acquisition as well as additions for the Alen project in Equatorial Guinea and Lochranza project in the North Sea. Liabilities settled in 2011 related primarily to deepwater Gulf of Mexico and Gulf of Mexico shelf properties. Revisions in 2011 resulted from changes in estimated abandonment costs mainly in the DJ Basin and deepwater Gulf of Mexico.
 
Accretion expense is included in DD&A expense in the consolidated statements of operations.