Accounting for Suspended Exploratory Wells

9 Months Ended

Sep. 30, 2016

Accounting for Suspended Exploratory Wells [Abstract]

Accounting for Suspended Exploratory Wells

Accounting for Suspended Exploratory Wells

The capitalized cost of suspended wells at September 30, 2016, was $3.5 billion, a net increase of $143 million from year-end 2015. The increase was primarily due to drilling activities, partially offset by well write-offs. During the nine months ended September 30, 2016, $46 million of exploratory well costs previously capitalized for greater than one year at December 31, 2015, were charged to expense.