Hurricane Ike over Gulf of Mexico, aims at Texas

By Chris Baltimore

HOUSTON (Reuters) - Hurricane Ike gathered strength as it churned through the Gulf of Mexico's warm waters on Wednesday on a track that would skirt the heart of the U.S. offshore oil patch before slamming into the Texas coast on Saturday.

Ike grew to a Category 2 storm with 100 mph (155 kph) winds and could come ashore as a ferocious Category 4 storm on the five-step intensity scale with winds of 132 mph (213 kph), the National Hurricane Center said.

But the latest projections pointed Ike toward the middle of the Texas coast, skirting to the west of the main region for offshore production in the gulf, which provides a quarter of U.S. oil and 15 percent of its natural gas.

U.S. crude oil prices hit a fresh five-month low of $101.36 a barrel on Wednesday as weak demand and a strong dollar offset a surprise OPEC production cut agreement and back-to-back hurricanes in the Gulf of Mexico that have cut deeply into U.S. energy supplies.

At 5 p.m. EDT (2100 GMT), the hurricane center said in its latest advisory Ike was 720 miles east of Brownsville, Texas and 370 miles south-southeast of the mouth of the Mississippi River.

New Orleans, still scarred by Hurricane Katrina, which killed 1,500 people and caused $80 billion in damage on the U.S. Gulf Coast in 2005, appeared to be out of danger.

Texas officials ordered some residents in low-lying Matagorda and Brazoria counties to evacuate. Mandatory evacuations had been illegal in Texas but the state changed its laws after Hurricane Rita in 2005. So far evacuation totals are nowhere near the 2 million people who fled Louisiana coastal cities in the path of Hurricane Gustav.

Other residents were boarding up homes and businesses to prepare for hurricane-force winds that could arrive on Friday.

"Right now, we have people coming in and out," said Steve Probert, who works at a hardware store in the resort community of Port Aransas, across the Laguna Madre from Corpus Christi. "They're buying everything we have under the sun."

President George W. Bush declared a federal emergency for Texas, allowing some federal disaster assistance.

BUSES NOT BODY BAGS

Ike's current track would see it hit the Texas coast just north of Corpus Christi, a major Gulf Coast oil refining hub.

But about 250 miles of Texas coastline from Matagorda Bay to Brownsville on the Mexico border are on alert for possible mandatory evacuations due to wide uncertainty over the storm's path. A line of buses made their way from Corpus Christi to inland shelters as the city evacuated some elderly and sick residents.

Some residents in Brazoria County south of the low-lying coastal city of Galveston were ordered to evacuate.

Texas Gov. Rick Perry said that some resident would likely resist evacuation calls but said he wants to see "buses, not body bags." Perry put 1,350 buses on standby to carry possible evacuees.