Alaska in Trouble for Oil Money

Earlier this week, BP said it would shut down Prudhoe Bay -- the biggest oil field 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. The Prudhoe Bay shutdown will cut in half Alaska's total oil production and the resulting revenue.

Without money coming in from Prudhoe Bay, Alaska's government can operate for only about two months before going into the red, Corbus said.