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Leases
12 Months Ended
Dec. 31, 2021
Disclosure of leases [Abstract]  
Leases Leases
LEASE ASSETS
Product transportation
and storage
Field equipment
and power
Offshore vessels
and equipment
Office leases
and other
Total
At December 31, 2019$1,166 $317 $182 $124 $1,789 
Additions (1)
17 121 148 
Depreciation(124)(53)(51)(26)(254)
Derecognitions(20)(5)(10)— (35)
Foreign exchange adjustments and other(1)(1)— (1)(3)
At December 31, 2020
$1,038 $379 $128 $100 $1,645 
Additions
48 36  4 88 
Depreciation
(110)(57)(27)(22)(216)
Foreign exchange adjustments and other
(2)(4)(2)(1)(9)
At December 31, 2021$974 $354 $99 $81 $1,508 
(1) The acquisition of Painted Pony in 2020 included lease assets of $93 million (note 7).
LEASE ASSETS, BY SEGMENT
As at December 31, 2021 and 2020, the Company had the following lease assets by segment:
 
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Exploration and Production
 
North America
$308 $345 
North Sea
1 
Offshore Africa
101 126 
Oil Sands Mining and Upgrading
1,027 1,080 
Head office
71 87 
 
$1,508 $1,645 
LEASE LIABILITIES
The Company measures its lease liabilities at the discounted value of its lease payments during the lease term. Lease liabilities at December 31, 2021 and 2020, were as follows:
 
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Lease liabilities
$1,584 $1,690 
Less: current portion
185 189 
 
$1,399 $1,501 
In addition to the lease assets disclosed above, on an ongoing basis the Company enters into short-term leases related to its Exploration and Production and Oil Sands Mining and Upgrading activities.
Other amounts included in net earnings and cash flows during 2021 and 2020 are provided below:
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Expenses relating to short-term leases (1)
$450 $409 
Interest expense on lease liabilities
$62 $67 
Variable lease payments not included in the measurement of lease liabilities
$65 $85 
Total cash outflows for leases (2)
$1,089 $983 
(1)During 2021, the Company capitalized $303 million (2020 - $197 million) of short-term leases as additions to property, plant and equipment.
(2)Comprised of cash outflows relating to lease liabilities, short-term leases, and variable lease payments.