Alberto Could Bring $1 Billion in Losses to U.S. Gulf Coast

Subtropical Storm Alberto weakened slightly as it neared Florida’s Panhandle, where it should come ashore Monday to spread heavy rains across the southern U.S., potentially causing more than $1 billion in economic losses.

Alberto was 50 miles (80 kilometers) south of Panama City, Florida, and moving north at 8 miles per hour, the National Hurricane Center in Miami said in an advisory at 11 a.m. New York time. The storm’s top winds fell to 60 mph and it’s expected to weaken further after it moves over land, gradually falling apart over the next 36 hours until it’s completely swallowed up by another weather system over Canada late this week.

Heavy rain has already fallen in southern states, and flood and flash-flood watches span the region, reaching as far north as North Carolina and Tennessee, the National Weather Service said. Parts of Florida, Georgia and Alabama could get from 4 to 8 inches (10 to 20 centimeters) with some areas receiving as much as a foot of rain. Governors in Florida, Mississippi and Alabama on Saturday declared states of emergency.

“From an economic standpoint most of the damage is already done, probably $600 or $700 million worth of lost economic activity due to rain, warnings and preparations,” said Chuck Watson, a disaster modeler at Enki Research in Savannah, Georgia. “Alberto might cause a couple hundred million in damage at worst when it does make landfall, and there is still flooding potential.”

Hardest hit will be small businesses that expected revenue from Memorial Day weekend tourists, Watson said.

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Subtropical Storm Alberto bearing down on Florida’s coastline Sunday. Credit: NASA

Source: National Oceanic and Atmospheric Administration

While Alberto nears the shore, the warning area has been scaled back from the Suwannee River back west to the Florida-Alabama state line. A storm surge watch has been posted from the river to Mexico Beach, Florida.

On Friday, Exxon Mobil Corp. pulled non-essential personnel from its Lena oil production platform and Royal Dutch Shell Plc shut in its Ram Powell hub. Chevron Corp. stopped oil production and evacuated personnel from its Blind Faith and Petronius platforms Saturday.

But most other energy companies are leaving offshore crews in place while they watch 2018’s first Atlantic storm. Alberto formed several days ahead of the June 1 official start of the six-month Atlantic hurricane season.

Storms in the Gulf are closely watched because 5 percent of U.S. natural gas and 17 percent of crude-oil production comes out of the region, according to the Energy Information Administration. Onshore areas along the coast also account for about 45 percent of U.S. refining capacity and 51 percent of gas processing.

— With assistance by Sheela Tobben, David Wethe, Amy Stillman, Kevin Crowley, and Ben Sharples

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