It works out great getting a huge chunk of state revenue from a natural resource rather than confiscating it from the public.  But, the stuff hits the fan when that money pit is closed for maintenance.

From the Washington Post:

Alaska Gov. Frank H. Murkowski yesterday ordered a state-government hiring freeze and worried over whether the state has enough heating oil or funding for social services as Alaskans braced for an economic crisis brought on by the sudden shutdown of oil production in Prudhoe Bay.

Oil company BP ceased most operations Sunday after a heavily corroded pipeline was discovered dripping oil. The closure is costing the state $6.4 million a day in tax revenues and royalties, and some officials estimate it could be six months before 16 miles of pipes are repaired and the pipeline is running at full capacity.

Nearly 90 percent of the state’s revenue comes from the oil fields, and Alaska’s revenue commissioner says the state can operate for about two months before running out of money.

90% of revenue from oil fields!  There is no way that they couldn’t forsee this scenario occuring one day.  I guess the poor folks in Alaska may have to pay taxes like the rest of us.

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This entry was posted by Brian on Friday, August 11th, 2006 at 3:50 am and is filed under Energy, News & Opinion. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. Please note the copyright policy.