and project cancellations. Lower gains on asset sales also contributed to the decrease with 2015 gains of $110 million compared with $700 million in 2014. Partially offsetting these effects were higher crude oil production of $900 million and lower operating expenses of $450 million.

The company’s average realization for U.S. crude oil and natural gas liquids in 2016 was $35.00 per barrel, compared with $42.70 in 2015 and $84.13 in 2014. The average natural gas realization was $1.59 per thousand cubic feet in 2016, compared with $1.92 in 2015 and $3.90 in 2014.

Net oil-equivalent production in 2016 averaged 691,000 barrels per day, down 4 percent from 2015 and up 4 percent from 2014. Between 2016 and 2015, production increases from shale and tight properties in the Permian Basin in Texas and New Mexico, and base business were more than offset by the effect of asset sales and normal field declines. Between 2015 and 2014, production increases due to project ramp-ups in the Gulf of Mexico and the Permian Basin in Texas and New Mexico were partially offset by the effect of asset sales and normal field declines.

The net liquids component of oil-equivalent production for 2016 averaged 504,000 barrels per day, up 1 percent from 2015 and 11 percent from 2014. Net natural gas production averaged about 1.1 billion cubic feet per day in 2016, down 15 percent from 2015 and 10 percent from 2014, primarily as a result of asset sales. Refer to the “Selected Operating Data” table on page FS-12 for a three-year comparison of production volumes in the United States.

International Upstream

International upstream incurred a loss of $483 million in 2016 compared with earnings of $2.09 billion in 2015. The decrease in earnings was primarily due to lower crude oil realizations of $1.89 billion, lower natural gas realizations of $600 million, lower gains on asset sales of $450 million and higher tax items of $330 million. Partially offsetting the decrease were lower exploration and operating expenses of $640 million and $520 million, respectively, and higher natural gas sales volumes of $330 million. Foreign currency effects increased earnings by $122 million in 2016 compared with an increase of $725 million a year earlier.

International upstream earnings were $2.09 billion in 2015 compared with $13.57 billion in 2014. The decrease between periods was primarily due to lower crude oil and natural gas realizations of $10.57 billion and $880 million, respectively, and higher depreciation expenses of $1.11 billion, primarily reflecting impairments. Lower gains on asset sales also contributed to the decrease with gains of $370 million in 2015 compared with $1.10 billion in 2014. Partially offsetting the decrease were higher crude oil sales volumes of $590 million and lower operating expenses of $510 million. Foreign currency effects increased earnings by $725 million in 2015, compared with an increase of $597 million a year earlier.

The company’s average realization for international crude oil and natural gas liquids in 2016 was $38.61 per barrel, compared with $46.52 in 2015 and $90.42 in 2014. The average natural gas realization was $4.02 per thousand cubic