UPDATE 3-Alex nears hurricane status; will miss oil rigs

Tue Jun 29, 2010 6:25pm EDT

* Tropical storm Alex just below hurricane strength

* Storm to miss oil platforms but some rigs evacuate

* More than 200,000 bpd oil production affected

* Pemex Gulf platforms operating, oil dips below $76 (Adds new speed, location, storm warning, closing oil price)

MEXICO CITY, June 29 (Reuters) - Tropical Storm Alex was close to hurricane strength in the Gulf of Mexico on Tuesday but remained on a track north of Mexican oil platforms and far southwest of U.S. fields, further easing crude market concerns over supply disruption.

Alex, the first named storm of the Atlantic hurricane season, was forecast to move slowly away from the Yucatan Peninsula over southern Gulf waters and curl northwest away from major oil-extraction facilities. It is expected to hit the coast of southern Texas or northern Mexico around mid-week.

As worries over drilling disruption eased, U.S. crude oil prices for August CLc1 fell $2.31, or 2.95 percent, to settle at $75.94 a barrel.

While most forecaster models showed Alex passing south of major offshore oil and natural gas platforms, some energy companies evacuated personnel and shut down some production as a precautionary measure.

Shell Oil Co (RDSa.L) shut subsea production over the weekend at the Auger and Brutus platforms that produce 210,000 barrels per day while Marathon halted production at its Ewing Banks platform, which produces 9,700 bpd.

The storm was not expected to damage oil capture systems that BP Plc (BP.L) (BP.N) has mounted over its huge Gulf oil spill, or interrupt the company's plans to drill a pair of relief wells intended to plug the leak by August, a BP executive told reporters in Houston. [ID:nN29144040]

But waves as high as 12 feet (4 metres) would delay plans to hook up a third oil capture system, said Kent Wells, a BP executive vice president. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Gulf of Mexico oil operations prepare for Alex[ID:nN28268353] Take a Look on hurricane season [ID:nN2005] National Hurricane Center link.reuters.com/cex74m Storm tracks: here ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Alex was packing sustained winds of about 70 mph (110 kph) and was located about 290 miles (465 km) southeast of Brownsville, Texas. It was moving northwest at 13 mph (20 kph), the U.S. National Hurricane Center said at 4 p.m. EDT/2100 GMT.

Forecasters expected Alex to become a hurricane in the next few hours and hit land on Wednesday night, bringing 6 to 12 inches (15 to 30 cm) of rain to northeastern Mexico and southern Texas as well as dangerous storm surges along the coast.

MEXICO CLOSES PORTS

Officials in south Texas readied rescue vehicles, shelters in San Antonio and Laredo and rushed supplies to the Rio Grande Valley. Bob Pinkerton, mayor of South Padre Island, a coastal community where the entire economy rests on tourism, urged residents and visitors to evacuate.

Texas Governor Rick Perry has issued a disaster proclamation for 19 counties, and ordered rescue boats and helicopters moved to the state's southernmost communities.

A hurricane warning was issued for the coast of Texas south of Baffin Bay down to the mouth of the Rio Grande, and along the coast of Mexico La Cruz. A tropical storm warning extended down to Cabo Rojo, just south of the port city of Tampico.

Mexico has closed its Gulf coast ports of Dos Bocas and Cayo Arcas -- which handle around 80 percent of the country's oil exports -- since Sunday due to strong surf.

Mexican state oil monopoly Pemex [PEMX.UL] has said its platforms in the southern Gulf are working normally, but it has suspended helicopter flights to and from the facilities.

Shell was closely monitoring Alex's advance in the Gulf but said its liquefied natural gas, or LNG, plant in Altamira, Mexico, was operating as usual.

Alex killed at least 10 people in Central America, some in storm-related accidents, as it passed overland at the weekend.

The Atlantic hurricane season runs from June 1 to Nov 30 and meteorologists predict this year will be very active. Hurricanes feed on warm water and the sea surface temperatures in the tropical Atlantic are higher than usual this year. (Reporting by Cyntia Barrera Diaz and Caroline Stauffer and Ana Driver in Houston. Editing by Chris Wilson)

Related Quotes and News

Company
Price
Related News
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
PKaplan131 wrote:
I have for weeks before the Gulf hurricane season urged our government and the media to hire our own super-tankers, encircle the well at a safe radius (10-15 miles) and pump surface oil onboard to be processed at facilities onshore. My suggestions have been ignored. We must have tanker capacity sufficient to keep up with the flow rate until the well is secured. New Orleans is a deep water port. Anything less guarantees an environmental disaster.

The oil gusher is not BP’s PROBLEM. It is OURS!

The ex-president of Shell Oil suggested this weeks ago on CNN but was apparently ignored also. The Saudis used super tankers and retrieved 80% of their surface oil. They also knew that the use of dispersants would render the oil unretrievable, nor did they discuss it for 2 months.
The myriad of US agencies involved in this disaster are directionless…….they get in each other’s way while dolphins wash up on shore. The Coast Guard could coordinate the super tanker operations instead of counting life jackets on barges used to block oil from the sensitive Louisiana marshes. Thad Allen should have a talk with his over zealous personnel as to their priorities. Get the oil off the water now and stop measuring it, discussing it, flying over it, or should we wait for a tropical storm in the Gulf, Sir? The reason the oil is washing ashore is because the tides scatter the rising oil at about 3 mph. By the time the crude surfaces it is far out of sight. The skimmer boats at the well site are useless and are there so BP can say they are there. They should operate as close to shore as possible to protect the beaches and marshes.
As for our president, I suggest that you get this done Mr. Obama before we loose an ocean. History will judge this disaster as your legacy because you did not act decisively. You are a mere observer motivated by politics. The White House comment line in 202-456-1111.

Jun 29, 2010 8:56am EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.