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SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Tables)
 12 Months Ended
Dec. 31, 2018
Oil and Gas Exploration and Production Industries Disclosures [Abstract]  
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure
A summary of the costs incurred for FCX’s oil and gas acquisition, exploration and development activities for the year ended December 31, 2016, follows:
Property acquisition costs for unproved properties
$
7

Exploration costs
22

Development costs
749

 
$
778
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure
The aggregate capitalized costs subject to amortization for oil and gas properties and the aggregate related accumulated amortization as of December 31, 2016, follow:
Properties subject to amortization
 
$
27,507

Accumulated amortizationa
 
(27,433
)
 
 
$
74


a.
Includes charges of $4.3 billion in 2016 to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules.
Results of Operations for Oil and Gas Producing Activities Disclosure
The results of operations from oil and gas producing activities for the year ended December 31, 2016, presented below, excludes non-oil and gas revenues, general and administrative expenses, interest expense and interest income. Income tax benefit was determined by applying the statutory rates to pre-tax operating results:
Revenues from oil and gas producing activities
$
1,513

Production and delivery costsa
(1,829
)
Depreciation, depletion and amortization
(839
)
Impairment of oil and gas properties
(4,317
)
Income tax benefit (based on FCX’s U.S. federal statutory tax rate)b
—

Results of operations from oil and gas producing activities
$
(5,472
)

a.
Includes $926 million in charges related to drillship settlements/idle rig and contract termination costs.
b.
FCX has provided a full valuation allowance on losses associated with oil and gas activities.
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities
The following table sets forth certain data pertaining to proved, proved developed and proved undeveloped reserves, all of which are in the U.S., for the year ended December 31, 2016.
 
 
Oil
 
Gas
 
Total
 
 
(MMBbls)a,b
 
(Bcf)a
 
(MMBOE)a
2016
 
 
 
 
 
 
Proved reserves:
 
 
 
 
 
 
Balance at beginning of year
 
207

 
274

 
252

Extensions and discoveries
 
—

 
—

 
—

Acquisitions of reserves in-place
 
—

 
—

 
—

Revisions of previous estimates
 
1

 
—

 
1

Sale of reserves in-place
 
(168
)
 
(118
)
 
(187
)
Production
 
(36
)
 
(69
)
 
(48
)
Balance at end of year

 
4

 
87

 
18

 
 
 
 
 
 
 
Proved developed reserves at December 31, 2016
 
4

 
87

 
18

 
 
 
 
 
 
 
Proved undeveloped reserves at December 31, 2016
 
—

 
—

 
—

a.
MMBbls = million barrels; Bcf = billion cubic feet; MMBOE = million BOE
b.
Includes NGL proved reserves of 1 MMBbls (all developed) at December 31, 2016.
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure
The Standardized Measure related to proved oil and natural gas reserves as of December 31, 2016, follows:
Future cash inflows
$
345

Future production expense
(175
)
Future development costsa
(439
)
Future income tax expense
—

Future net cash flows
(269
)
Discounted at 10% per year
32

Standardized Measure
$
(237
)
a.
Includes estimated asset retirement costs of $0.4 billion at December 31, 2016.
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows
A summary of the principal sources of changes in the Standardized Measure for the year ended December 31, 2016, follows:
Balance at beginning of year
 
$
1,392

Changes during the year:
 
 
Sales, net of production expenses
 
(831
)
Net changes in sales and transfer prices, net of production expenses
 
(341
)
Extensions, discoveries and improved recoveries
 
—

Changes in estimated future development costs, including timing and other
 
146

Previously estimated development costs incurred during the year
 
295

Sales of reserves in-place
 
(1,049
)
Revisions of quantity estimates
 
12

Accretion of discount
 
139

Net change in income taxes
 
—

Total changes
 
(1,629
)
Balance at end of year
 
$
(237
)