A、89 percent of the state income comes from the oil revenue. B、State sales tax and personal income tax constitute only a fractio

Alaska Governor Frank Murkowski imposed a state hiring freeze Wednesday because of the millions of dollars in revenue Alaska is losing as a result of the Prudhoe Bay oilfield shutdown, and said he would support hearings into BP’s maintenance practices. The governor also said he would direct Alaska’s attorney general to investigate whether the state could hold the oil giant fully accountable for the state’s losses.
Earlier this week, BP said it would shut down Prudhoe Bay -- the biggest oilfield in the nation -- because of a small leak and severe pipeline corrosion. Energy officials have said the pipeline repairs are likely to take months, curtailing Alaskan production into next year.
The expected loss of 400,000 barrels per day at today’s oil prices means the state is losing about ＄6.4 million a day in royalties and taxes, Revenue Commissioner Bill Corbus said.
The state receives 89 percent of its income from oil revenue; Alaska has no state sales tax and no personal income tax. Without money coming in from Prudhoe Bay, Alaska’s government can operate for only about two months before going into the red, Corbus said.
BP, the world’s secondlargest oil company, said it would replace 16 miles of pipeline that carries oil from Prudhoe Bay to the 800-mile Trans-Alaska Pipeline. The Prudhoe Bay field accounts for 8 percent of US domestic output. Because oil demand is so high and the nation’s petroleum supplies are so tight, the shutdown has already driven oil prices up and could mean higher prices at the gasoline pump as well.