Asset Impairments (Notes)

6 Months Ended

Jun. 30, 2014

Asset Impairments [Abstract]

Asset Impairment Charges [Text Block]

4. Asset Impairments

Pre-tax (non-cash) asset impairment charges were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(millions)	2014		2013		2014		2013
US Properties, Primarily Shelf and Deepwater Gulf of Mexico	$	18	$	—	$	23	$	—
Mari-B (Offshore Israel)	14		—		14		—
McCulloch and Other North Sea Properties	2		—		94		—
Total	$	34	$	—	$	131	$	—

US and Offshore Israel In the US and offshore Israel, the asset carrying values of certain oil and natural gas assets increased when we recorded associated increases in asset retirement obligations. We determined that the recorded asset carrying values of some of these assets were not recoverable from future cash flows and recorded impairment expense. US properties included the currently-producing Raton natural gas well, as well as the Conquest and Gemini fields, which are being abandoned.

North Sea In March 2014, the operator of one of our remaining North Sea fields notified the working interest owners that expected field abandonment costs would be higher than originally projected. The operator also notified the working interest owners that it would begin working with the appropriate regulatory agency for approval of cessation of production and subsequent field abandonment sooner than anticipated.

As a result of this new information, we adjusted the asset retirement obligation to reflect the updated estimate of abandonment costs and timing. We assessed the asset for impairment and determined that it was impaired. The impairment charge was included in consolidated income from continuing operations.

See Note 2. Basis of Presentation and Note 7. Fair Value Measurements and Disclosures.