[Josh Painter]

"Palin’s additional tax, basically a Windfall tax, caused the Oil companies to stop producing and drilling new exploratory wells because they would have difficulty making a profit from increases in the price. The result was a production loss of about 40% which also decreased Alaska's overall gains in revenues."

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Not true. Federal restrictions have led to the decrease in production and exploration in Alaska, not state taxes:

U.S. Government Shuts Out Increased Alaskan Oil Production Oil

Lowering taxes didn't increase oil output

[PSYCHO-FREEP]

The subject is still highly debatable. Most of the reasons are outlined here; http://seattletimes.nwsource.com/html/businesstechnology/2014601450_alaska27.html (Actually read it in it's entirety and pay close attention to the very last paragraph.)

Of course, many of the problems with the loss of production were also connected to the age of the pipeline, new restrictions, etc, but the tax on price increases took away most incentive to keep drilling. Instead, much of the interest went to Canada.