"We are sort of in the process of looking at what we can consolidate, what we can do more efficiently, etc., and sort of make some reductions first, and we think that is a correct priority before we try to look at different sources of revenue. So that is what we're doing now – looking at the expense side," Walker said, in an exclusive interview Tuesday.
Walker reported that the Alaska oil pipeline is currently transiting oil well below capacity.
The Alaskan economy, overwhelmingly dependent on oil revenues, is likely to face a $3.5-billion budget deficit in 2015, the Alaskan governor's office stated last week.
Global oil prices have fallen about 50 percent since summer 2014, from about $110 a barrel to less than $50. Experts have predominantly associated the drop in oil prices with the oversupply in the market, aggravated by the decision of the Organization of the Petroleum Exporting Countries (OPEC) to keep oil output at its current high levels.