By Yereth Rosen

ANCHORAGE, Alaska (Reuters) - The state of Alaska vowed to tighten oversight on Exxon Mobil after the U.S. Supreme Court struck down a $2.5 billion (1.3 billion pounds) punitive damage judgment for the 1989 Valdez disaster.

"It's sad to consider that there's probably celebration going on in some industry board rooms right now, while right here in Alaska you're not seeing that celebration," Gov. Sarah Palin told Reuters on Wednesday.

"Exxon will know that we're very disappointed in this ruling. They will know that our commitment is to stringent, responsible oversight of the industry," said Palin during a break in a cabinet meeting on the subject.

The Exxon Valdez spill was the lowest point in Alaska's sometimes rocky relationship with the oil industry.

Oil money provides the backbone of the economy and most of the tax revenue that Alaska uses to run its operations.

Yet Alaskans have chafed at what many believe is industry's undue political influence, and there is a litany of complaints that oil development has spoiled a once-pristine environment.

The Republican governor said new oil developments will not take place in Alaska unless they meet safety and ethics standards. As word spread on the Supreme Court ruling, Alaskans expressed anger, disappointment and shock.

"Every Alaskan has to be angry, hurt and deflated after all these years of expecting a reasonable punishment, only to see it gutted by the Supreme Court," said State Sen. Hollis French, an Anchorage Democrat.