Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Measurement [Abstract]

Fair value hierarchy for gross financial assets and liabilities

		Millions of Dollars
		March 31, 2017									December 31, 2016
		Level 1			Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Commodity derivatives		$	135		95		21		251		194		96		22		312
Total assets		$	135		95		21		251		194		96		22		312

Liabilities
Commodity derivatives		$	152		70		15		237		207		105		22		334
Total liabilities		$	152		70		15		237		207		105		22		334

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, 2017
Assets	$	251		157		94		-		4		90
Liabilities		237		157		80		16		5		59

December 31, 2016
Assets	$	312		221		91		-		5		86
Liabilities		334		221		113		12		12		89


At March 31, 2017 and December 31, 2016, 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
	2017			2016		2017		2016
Financial assets
Commodity derivatives	$	94		91		94		91
Total loans and advances—related parties		641		701		641		701
Financial liabilities
Total debt, excluding capital leases		25,616		26,423		28,734		29,307
Commodity derivatives		64		101		64		101