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Financial and Derivative Instruments | 12 Months Ended
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Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial and Derivative Instruments | Financial and Derivative Instruments Derivative Commodity Instruments The company’s derivative commodity instruments principally include crude oil, natural gas, liquefied natural gas and refined product futures, swaps, options, and forward contracts. The company applies cash flow hedge accounting to certain commodity transactions, where appropriate, to manage the market price risk associated with forecasted sales of crude oil. The company’s derivatives are not material to the company’s financial position, results of operations or liquidity. The company believes it has no material market or credit risks to its operations, financial position or liquidity as a result of its commodity derivative activities. The company uses derivative commodity instruments traded on the New York Mercantile Exchange and on electronic platforms of the Inter-Continental Exchange and Chicago Mercantile Exchange. In addition, the company enters into swap contracts and option contracts principally with major financial institutions and other oil and gas companies in the “over-the-counter” markets, which are governed by International Swaps and Derivatives Association agreements and other master netting arrangements. Depending on the nature of the derivative transactions, bilateral collateral arrangements may also be required. Derivative instruments measured at fair value at December 31, 2021, 2020 and 2019, and their classification on the Consolidated Balance Sheet below and Consolidated Statement of Income on the following page: Consolidated Balance Sheet: Fair Value of Derivatives
|  |  |  |  | At December 31
Type of Contract | Balance Sheet Classification | 2021 |  |  | 2020
Commodity | Accounts and notes receivable, net | $ | 251 |  |  |  | $ | 73 |
Commodity | Long-term receivables, net | 62 |  |  |  | 1 |
Total assets at fair value | $ | 313 |  |  |  | $ | 74 |
Commodity | Accounts payable | $ | 71 |  |  |  | $ | 172 |
Commodity | Deferred credits and other noncurrent obligations | 1 |  |  |  | 1 |
Total liabilities at fair value | $ | 72 |  |  |  | $ | 173 |
Consolidated Statement of Income: The Effect of Derivatives
|  | Gain/(Loss)
Type of Derivative | Statement of | Year ended December 31
Contract | Income Classification | 2021 |  |  | 2020 |  | 2019
Commodity | Sales and other operating revenues | $ | (685) |  |  |  | $ | 69 |  |  | $ | (291) |
Commodity | Purchased crude oil and products | (64) |  |  |  | (36) |  |  | (17) |
Commodity | Other income | (46) |  |  |  | 7 |  |  | (2) |
|  | $ | (795) |  |  |  | $ | 40 |  |  | $ | (310) |
All designated cash flow hedges during the year were settled by December 31, 2021. The impact on sales and other operating revenues from designated hedges in 2021 was immaterial. The table below represents gross and net derivative assets and liabilities subject to netting agreements on the Consolidated Balance Sheet at December 31, 2021 and December 31, 2020. Consolidated Balance Sheet: The Effect of Netting Derivative Assets and Liabilities
|  | Gross Amounts Recognized |  | Gross Amounts Offset |  | Net Amounts Presented |  | Gross Amounts Not Offset |  | Net Amounts
At December 31, 2021 |  |  |  |  |
Derivative Assets - not designated |  | $ | 1,684 |  |  | $ | 1,371 |  |  | $ | 313 |  |  | $ | — |  |  | $ | 313 |
Derivative Liabilities - not designated |  | $ | 1,443 |  |  | $ | 1,371 |  |  | $ | 72 |  |  | $ | — |  |  | $ | 72 |
At December 31, 2020 |  |  |  |  |  |  |  |  |  |
Derivative Assets - not designated |  | $ | 818 |  |  | $ | 744 |  |  | $ | 74 |  |  | $ | — |  |  | $ | 74 |
Derivative Liabilities - not designated |  | $ | 917 |  |  | $ | 744 |  |  | $ | 173 |  |  | $ | — |  |  | $ | 173 |
Derivative assets and liabilities are classified on the Consolidated Balance Sheet as accounts and notes receivable, long-term receivables, accounts payable, and deferred credits and other noncurrent obligations. Amounts not offset on the Consolidated Balance Sheet represent positions that do not meet all the conditions for “a right of offset.” Concentrations of Credit Risk The company’s financial instruments that are exposed to concentrations of credit risk consist primarily of its cash equivalents, marketable securities, derivative financial instruments and trade receivables. The company’s short-term investments are placed with a wide array of financial institutions with high credit ratings. Company investment policies limit the company’s exposure both to credit risk and to concentrations of credit risk. Similar policies on diversification and creditworthiness are applied to the company’s counterparties in derivative instruments. For a discussion of credit risk on trade receivables, see Note 28 Financial Instruments - Credit Losses.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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