Fair Value Measurements and Disclosures (Tables)

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

Assets and liabilities measured at fair value on a recurring basis

Measurement information for assets and liabilities that are measured at fair value on a recurring basis was as follows:

	Fair Value Measurements Using
	Quoted Prices in  Active Markets (Level 1) (1)			Significant Other Observable Inputs (Level 2) (2)				Significant Unobservable Inputs (Level 3) (3)		Adjustment (4)			Fair Value Measurement
(millions)
September 30, 2011
Financial Assets
Mutual Fund Investments	$	101			$	-		$	-	$	-		$	101
Commodity Derivative Instruments		-				174			-		(43	)		131
Financial Liabilities
Commodity Derivative Instruments		-				(49	)		-		43			(6	)
Portion of Deferred Compensation
Liability Measured at Fair Value		(152	)			-			-		-			(152	)
December 31, 2010
Financial Assets
Mutual Fund Investments	$	112			$	-		$	-	$	-		$	112
Commodity Derivative Instruments		-				106			-		(44	)		62
Financial Liabilities
Commodity Derivative Instruments		-				(119	)		-		44			(75	)
Interest Rate Derivative Instrument		-				(63	)		-		-			(63	)
Portion of Deferred Compensation Liability
Measured at Fair Value		(178	)			-			-		-			(178	)

(1) Level 1 measurements are fair value measurements which use quoted market prices (unadjusted) in active markets for identical assets or liabilities. We use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value.

(2) Level 2 measurements are fair value measurements which use inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly.

(3) Level 3 measurements are fair value measurements which use unobservable inputs.

(4) Amount represents the impact of master netting agreements that allow us to net cash settle asset and liability positions with the same counterparty.

Assets and liabilities measured at fair value on a nonrecurring basis

 The assets were reduced to their estimated fair values. Information about the impaired assets is as follows:

	Fair Value Measurements Using
Description	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Book Value (1)		Total Pre-tax (Non-cash) Impairment Loss
(millions)
Three Months Ended September 30, 2011
Impaired Oil and Gas Properties	$	-	$	-	$	-	$	-	$	-
Three Months Ended September 30, 2010
Impaired Oil and Gas Properties	$	-	$	-	$	48	$	148	$	100
Nine Months Ended September 30, 2011
Impaired Oil and Gas Properties		-		-		32		171		139
Nine Months Ended September 30, 2010
Impaired Oil and Gas Properties		-		-		48		148		100

(1) Amount represents net book value atdate of assessment.

Additional fair value disclosures

Fair value information regarding our debt is as follows:

	September 30,				December 31,
	2011				2010
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
(millions)
Long-Term Debt, Net of Unamortized Discount (1)	$	3,511	$	4,031	$	1,977	$	2,302

(1) Excludes FPSO lease obligation.