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Impairments
 9 Months Ended
Sep. 30, 2012
Disclosure Text Block [Abstract]  
Impairments

5.  Impairments

 

       The following summarizes impairment expense by segment:

   Three Months Ended Nine Months Ended
   September 30, September 30,
millions2012 2011 2012 2011
Oil and Gas Exploration & Production           
 Long-lived assets held for use           
  U.S. onshore properties$2 $ — $81 $100
  Gulf of Mexico properties  —  93  67  93
 Cost-method investment 1  87  12  91
Midstream           
 Long-lived assets held for use 1  3  6  3
Total impairment expense$4 $183 $166 $287

       In 2012, U.S. onshore and midstream properties were impaired due to lower natural-gas prices, and Gulf of Mexico properties were impaired as a result of downward reserves revisions for a property that was near the end of its economic life. In 2011, U.S. onshore properties were impaired due to a change in projected cash flows resulting from the Company's intent to divest of the properties, and Gulf of Mexico properties were impaired due to declines in estimated recoverable reserves. Impairments of the Company's Venezuelan cost-method investment were due to declines in estimated recoverable reserves in 2012 and 2011, and lower crude oil prices in 2012.

       The following summarizes the aggregate fair values of the above-described assets, by major category and input level within the fair-value hierarchy, at the respective dates of impairment:

             
millions           
2012Level 1 Level 2 Level 3 (1) Total
Long-lived assets held for use$ — $ — $38 $38
Cost-method investment  —   —  34  34
            
2011           
Long-lived assets held for use$ — $ — $395 $395
Cost-method investment  —   —  38  38
             

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(1)       The income approach was used to measure fair value.

 

Impairments of Unproved Properties   Impairments of unproved properties are included in exploration expense in the Company's Consolidated Statements of Income. In the second quarter of 2012, the Company recognized a $720 million impairment of unproved Powder River coalbed methane properties primarily resulting from lower natural-gas prices. Also in the second quarter of 2012, the Company recognized a $124 million impairment of an unproved Gulf of Mexico natural-gas property that the Company does not plan to pursue under the forecasted natural-gas price environment.