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Asset Retirement Obligations
 9 Months Ended
Sep. 30, 2014
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
Asset Retirement Obligations
ARO consists primarily of estimated costs of dismantlement, removal, site reclamation and similar activities associated with our oil and gas properties. Changes in ARO are as follows:
 
Nine Months Ended
September 30,
(millions)
2014
 
2013
Asset Retirement Obligations, Beginning Balance
$
586

 
$
402

Liabilities Incurred
38

 
4

Liabilities Settled
(77
)
 
(15
)
Revision of Estimate
123

 
5

Accretion Expense (1)
28

 
21

Asset Retirement Obligations, Ending Balance
$
698

 
$
417

(1) Accretion expense is included in DD&A expense in the consolidated statements of operations.
For the nine months ended September 30, 2014
Liabilities incurred were due to new wells and facilities and included $13 million for onshore US, $16 million for deepwater Gulf of Mexico, and $9 million for Eastern Mediterranean.
Liabilities settled primarily related to onshore US property abandonments and non-core, onshore US assets sold. At December 31, 2013, our non-operated North Sea fields were classified as held for sale, which included the related ARO for these fields. During 2014, we reclassified the remaining, unsold North Sea properties as held and used. The North Sea field ARO of $24 million is recorded within liabilities settled.
Revisions were primarily due to an increase of $67 million related to a non-operated North Sea field due to an increase in costs and a change in timing recorded during the first quarter of 2014. See Note 4. Asset Impairments. Additional revisions were due to changes in cost and timing estimates and primarily included $21 million for DJ Basin, $16 million for Equatorial Guinea, $9 million for Eastern Mediterranean, and $9 million for deepwater Gulf of Mexico.
For the nine months ended September 30, 2013
Liabilities incurred were due to new wells and facilities for onshore development. Liabilities settled in 2013 relate primarily to non-core onshore US properties that were sold. See Note 3. Divestitures.