$1.44 billion increase in losses was primarily driven by the effect of lower crude oil prices. The increase in losses had a direct impact on the company’s U.S. income tax benefit, resulting in an increase of $624 million between year-over-year periods, from a tax benefit of $1.69 billion in 2015 to a tax benefit of $2.32 billion in 2016. International income before tax was reduced between calendar years from $7.72 billion in 2015 to $2.16 billion in 2016. This $5.56 billion decline was also primarily driven by the effect of lower crude oil prices. This effect drove the $1.24 billion reduction in international income tax expense between year-over-year periods, from $1.83 billion in 2015 to $588 million in 2016. Refer also to the discussion of the effective income tax rate in Note 19 on Page FS-49.

The decline in income tax expense in 2015 of $11.76 billion is consistent with the decline in total income before tax for the company of $26.36 billion.  U.S. income before tax was reduced from $6.29 billion in 2014 to a loss of $2.88 billion in 2015. This $9.17 billion reduction was primarily driven by the effect of lower crude oil prices. The lower earnings had a direct impact on the company’s U.S. income tax expense, resulting in a reduction of $4.14 billion between year-over-year periods, from a tax expense of $2.45 billion in 2014 to a tax benefit of $1.69 billion in 2015. International income before tax was reduced between calendar years from $24.91 billion in 2014 to $7.72 billion in 2015. This $17.19 billion decline was also primarily driven by the effect of lower crude oil prices and the shut in of production in the Partitioned Zone. These effects drove the $7.62 billion reduction in international income tax expense between year-over-year periods, from $9.44 billion in 2014 to $1.82 billion in 2015. In addition, there was an income tax benefit from the decrease in statutory tax rates in the United Kingdom in 2015. Refer also to the discussion of the effective income tax rate in Note 19 on Page FS-49.

Liquidity and Capital Resources

Sources and uses of cash

The lower crude oil price environment that began in second-half 2014 and continued through 2016 significantly reduced the company’s cash flows from operations. The company responded with reductions in capital and exploratory expenditures, reductions in its cost structure, and increased asset sales. Progress on these actions during 2016 included:

Reducing capital expenditures to $18.1 billion, a 39 percent decrease compared to 2015,

Reducing operating and administrative expenses by $2.5 billion, a 9 percent decrease compared to 2015, and

Realizing net proceeds from asset sales of $2.8 billion during 2016, with additional transactions expected to close in 2017.

The strength of the company’s balance sheet enabled it to meet the remaining cash outflows through additional borrowing.

Cash, Cash Equivalents and Marketable Securities Total balances were $7.0 billion and $11.3 billion at December 31, 2016 and 2015, respectively. Cash provided by operating activities in 2016 was $12.8 billion, compared with $19.5 billion in 2015 and $31.5 billion in 2014, reflecting lower crude oil prices.