The governor of Alaska has earlier threatened ExxonMobil and its partners ConocoPhillips, BP and Chevron with eviction from a state-owned gas field, with the firms consequently conceding to increase natural gas output by 17% in Alaska, according to the news source.

With energy prices touching all-time highs, the state is at odds with the energy firms over revenues and increased taxes. This continued confrontation, according to industry watchers, could lead to a less-favorable investment climate in Alaska, which has the second-largest hydrocarbon reserves in the US after Texas.

The Houston Chronicle reported the Alaska governor as saying that, as the state depends on the energy industry for 85% of tax revenue and 33% of employment, the need to develop the resources in line with increasing energy prices exists.

The state’s aggressive stance towards energy firms could backfire with the major players backing out of projects, leading to small and inexperienced operators to vie for them, resulting in possible shortcomings in developing these resources, according to market analysts, reported the news source.