Accounting For Certain Long-Lived Assets

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

Accounting For Certain Long-Lived Assets [Text Block]

13.  Accounting for Certain Long-Lived Assets

EOG reviews its proved oil and gas properties for impairment purposes by comparing the expected undiscounted future cash flows at a producing field level to the unamortized capitalized cost of the asset.  During 2011, 2010 and 2009, such reviews indicated that unamortized capitalized costs of certain properties were higher than their expected undiscounted future cash flows due primarily to lower commodity prices, downward reserve revisions, drilling of marginal or uneconomic wells, or development dry holes in certain producing fields.  Several impairments over this period were recognized in connection with the signing of purchase and sale agreements.  As a result, EOG recorded pretax charges of $403 million, $107 million and $90 million in the United States during 2011, 2010 and 2009, respectively, and $428 million, $418 million and $4 million in Canada during 2011, 2010 and 2009, respectively.  Additionally, EOG recorded pretax charges of $3 million in Other International during 2011 and $1 million in Trinidad during 2010.  The pretax charges are included in Impairments on the Consolidated Statements of Income and Comprehensive Income.  The carrying values for assets determined to be impaired were adjusted to estimated fair value using the income approach.  If applicable, EOG utilizes accepted bids as the basis for determining fair value.  Amortization of unproved oil and gas property costs, including amortization of capitalized interest, was $197 million, $217 million and $212 million for 2011, 2010 and 2009, respectively.