JUNEAU, Alaska, Dec. 11 (UPI) -- Alaska may expect as much as $5 billion from oil revenue per year during the next two years as market prices experience a steady rise, officials said.
A tax on oil represents more than 80 percent of the state government revenue. Sean Parnell, the Republican governor, is set to unveil his state budget next week.
Pat Galvin, the state revenue commissioner, said he feels confident about the expected revenue despite declines in oil production from the resource-rich North Slope, the Fairbanks Daily News-Miner reports.
Galvin said he expects a steady rise in oil prices to continue beyond June 2010.
Parnell said this week he would call for a "tweak" of the state oil tax system as several international explorers expressed reservations about moving strongly in the state.
BP Alaska spokesman Steve Rinehart said the current tax regime is "bad" for the industry. International oil developers also gave mixed reports on the sustained resource potential for Alaska.
Galvin said he expects production to decline temporarily before regaining strength in 2013.
