Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Measurement [Abstract]

Fair value hierarchy for gross financial assets and liabilities

	Millions of Dollars
	March 31, 2016					December 31, 2015
	Level 1		Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Assets
Commodity derivatives	$	293	186	48	527	516	242	70	828
Total assets	$	293	186	48	527	516	242	70	828
Liabilities
Commodity derivatives	$	307	202	8	517	515	273	12	800
Total liabilities	$	307	202	8	517	515	273	12	800

Commodity derivative balances subject to right of setoff

The following table summarizes those commodity derivative balances subject to the right of setoff as
presented on our consolidated balance sheet. We have elected to offset the recognized fair value amounts for
multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of setoff exists.
	Millions of Dollars
	Gross		Gross	Net		Gross Amounts
	Amounts		Amounts	Amounts	Cash	without	Net
	Recognized		Offset	Presented	Collateral	Right of Setoff	Amounts
March 31, 2016
Assets	$	527	349	178	-	5	173
Liabilities		517	349	168	7	9	152
December 31, 2015
Assets	$	828	600	228	-	8	220
Liabilities		800	600	200	1	11	188
At March 31, 2016 and December 31, 2015, we did not present any amounts gross on our consolidated
balance sheet where we had the right of setoff.

Net fair value of financial instruments

The following table summarizes the net fair value of financial instruments (i.e., adjusted where the right of setoff exists for commodity derivatives):
	Millions of Dollars
	Carrying Amount			Fair Value
	March 31		December 31	March 31	December 31
	2016		2015	2016	2015
Financial assets
Commodity derivatives	$	178	228	178	228
Total loans and advances—related parties		753	808	753	808
Financial liabilities
Total debt, excluding capital leases		28,576	24,062	29,505	24,785
Commodity derivatives		161	199	161	199

Values of assets, by major category, measured at fair value on a nonrecurring basis

Non-Recurring Fair Value Measurement
The following table summarizes the fair value hierarchy by major category for assets accounted for at fair value on a non-recurring basis:
	Millions of Dollars
			Fair Value Measurements Using
	Fair Value		Level 3 Inputs	Before-Tax Loss
March 31, 2016
Net PP&E (held for use)	$	217	217	129