Asset Retirement Obligations

6 Months Ended

Jun. 30, 2022

Asset Retirement Obligation Disclosure [Abstract]

Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land or seabed at the end of oil and gas production operations. Changes in asset retirement obligations were as follows:


	June 30,
(In millions)	2022		2021
Beginning balance as of January 1	$	316	$	254
Incurred liabilities, including acquisitions	8		6
Settled liabilities, including dispositions	(3)		(2)
Accretion expense (included in depreciation, depletion and amortization)	7		6
Revisions of estimates	(5)		32

Ending balance as of June 30, total	$	323	$	296

Ending balance as of June 30, short-term	$	46	$	24

•2021 — In the second quarter of 2021, we had a revision of estimate of $29 million related to anticipated costs for decommissioning certain wells, pipelines and production facilities for previously divested offshore non-producing long-lived assets located in the Gulf of Mexico. As of June 30, 2021, $14 million of this revision of estimate was classified as short-term. See Note 22 for further information. During the quarter, we recognized $22 million of impairment expense associated with these non-producing long-lived assets within our consolidated statements of income. See Note 10 for further information.