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Financial and derivative instruments
 12 Months Ended
Dec. 31, 2019
Financial and derivative instruments 7.  Financial and derivative instruments
Financial instruments
The fair value of the company’s financial instruments is determined by reference to various market data and other appropriate valuation techniques. There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value.
At December 31, 2019 and at December 31, 2018, the fair value of long-term debt
 ($4,447 million, excluding finance lease obligations) was primarily a level 2 measurement.
Derivative instruments
The company’s size, strong capital structure and the complementary nature of the Upstream, Downstream and Chemical businesses reduce the company’s enterprise-wide risk from changes in commodity prices and currency exchange rates. In addition, the company uses commodity-based contracts, including derivative instruments to manage commodity price risk. The company does not designate derivative instruments as a hedge for hedge accounting purposes.
Credit risk associated with the company’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.
The carrying values of derivative instruments on the Consolidated balance sheet were gross assets of $0 million (2018- $31
 million), gross liabilities of 
$2 million (2018- $15 million)
and collateral receivable of $6 million (2018
-
$0 million)
 at year end
.
At December 31, 2019, the net notional forward long / (short) position of derivative instruments was
(
590,000)
 barrels for crude and 
0
 barrels for products. At December 31, 2018, the net notional forward long / (short) position of derivative instruments was (340,000) barrels for crude and (350,000) barrels for products
.
Realized and unrealized gain or (loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a
before-tax
basis:
millions of Canadian dollars
 
 
2019
    
    
2018
    
    
2017
  
Revenues
  
 
(3
)
 
 
    
6
     
-
  
Purchases of crude oil and products
  
 
(7
)
    
(24
)     
(5
) 
Total
  
 
(10
)
    
(18
)     
(5
)