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Asset Retirement Obligations
 9 Months Ended
Sep. 30, 2023
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
15.
Asset Retirement Obligations

The following table presents the changes in Devon’s asset retirement obligations.

 

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

Asset retirement obligations as of beginning of period

 

$

529

 

 

$

485

 

Liabilities incurred

 

 

104

 

 

 

62

 

Liabilities settled and divested

 

 

(24

)

 

 

(13

)

Revision of estimated obligation

 

 

27

 

 

 

(35

)

Accretion expense on discounted obligation

 

 

21

 

 

 

18

 

Asset retirement obligations as of end of period

 

 

657

 

 

 

517

 

Less current portion

 

 

16

 

 

 

19

 

Asset retirement obligations, long-term

 

$

641

 

 

$

498

 

 

Devon's asset retirement obligations recorded during the first nine months of 2023 include a potential obligation to decommission two California offshore oil and gas production platforms and related facilities pursuant to an order of the Department of the Interior, Bureau of Safety and Environmental Enforcement. For additional information, see Note 17.

 

Devon also increased its asset retirement obligations during the first nine months of 2023 by approximately $27 million primarily due to inflation-driven increases in current cost estimates. During the first nine months of 2022, Devon increased its asset retirement obligations by approximately $38 million due to asset acquisitions in the Eagle Ford and Williston Basin. During this same time period Devon reduced its asset retirement obligations by $35 million primarily due to extended retirement dates for oil and gas assets, partially offset by inflation-driven increases to current settlement costs.