Financial Instruments and Derivatives (Tables)

12 Months Ended

Dec. 31, 2020

Financial Instruments And Derivatives [Abstract]

Financial Instruments

The estimated fair value of financial instruments at December 31, 2020 and December 31, 2019, and the related hierarchy level for the fair value measurement is as follows:

	At December 31, 2020
	(millions of dollars)
	Fair Value
	Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value
Assets
Derivative assets (1)	1,247	194	—	1,441	(1,282)	(6)	—	153
Advances to/receivables from equity companies (2)(6)	—	3,275	5,904	9,179	—	—	(367)	8,812
Other long-term financial assets (3)	1,235	—	944	2,179	—	—	125	2,304
Liabilities
Derivative liabilities (4)	1,443	254	—	1,697	(1,282)	(202)	—	213
Long-term debt (5)	50,263	125	4	50,392	—	—	(4,890)	45,502
Long-term obligations to equity companies (6)	—	—	3,530	3,530	—	—	(277)	3,253
Other long-term financial liabilities (7)	—	—	964	964	—	—	44	1,008

	At December 31, 2019
	(millions of dollars)
	Fair Value
	Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value
Assets
Derivative assets (1)	533	102	—	635	(463)	(70)	—	102
Advances to/receivables from equity companies (2)(6)	—	1,941	6,729	8,670	—	—	(128)	8,542
Other long-term financial assets (3)	1,145	—	974	2,119	—	—	44	2,163
Liabilities
Derivative liabilities (4)	568	70	—	638	(463)	(105)	—	70
Long-term debt (5)	25,652	134	3	25,789	—	—	(1,117)	24,672
Long-term obligations to equity companies (6)	—	—	4,245	4,245	—	—	(257)	3,988
Other long-term financial liabilities (7)	—	—	1,042	1,042	—	—	16	1,058

(1)Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles - net

(2)Included in the Balance Sheet line: Investments, advances and long-term receivables

(3)Included in the Balance Sheet lines: Investments, advances and long term receivables and Other assets, including intangibles - net

(4)Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations

(5)Excluding finance lease obligations

(6)Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the company.

(7)Included in the Balance Sheet line: Other long-term obligations. Includes contingent consideration related to a prior year acquisition where fair value is based on expected drilling activities and discount rates.

Schedule of Notional Amounts of Outstanding Derivative Positions

The net notional long/(short) position of derivative instruments at December 31, 2020, and December 31, 2019, was as follows:

	December 31,	December 31,
	2020	2019
	(millions)
Crude oil (barrels)	40	57
Petroleum products (barrels)	(46)	(38)
Natural gas (MMBTUs)	(500)	(165)

Derivative Instruments - Before-Tax Realized and Unrealized Gains / (Losses)

Realized and unrealized gains/(losses) on derivative instruments that were recognized in the Consolidated Statement of Income are included in the following lines on a before-tax basis:

	2020	2019	2018
	(millions of dollars)
Sales and other operating revenue	404	(412)	130
Crude oil and product purchases	(407)	179	(120)
Total	(3)	(233)	10