If an evacuation of the workers drilling a relief well is required because of the storm, Adm. Allen said the operation would be halted for 14 days due to the amount of time to break production and stop drilling.

The storm is expected to miss the spill, but it could push the slick more toward the Gulf Coast.

Adm. Allen said crews haven't seen oil being pushed further inland, but there has been a change in direction.

"It [the oil] was generally heading east to the panhandle of Florida," he said. "Because of wave conditions and current, we now see oil start entering the Mississippi Sound and areas around Chandelier and Breton Sound. We're very concerned about that. We're moving forces there as we speak."

Alex, the first named storm of the Atlantic hurricane season, was expected to reach hurricane status with winds of at least 74 mph, and is expected to make landfall near the border of Mexico and Texas sometime between Wednesday night and Thursday morning, according to the National Hurricane Center.

Risk Management Solutions likened the forecast for Alex to Hurricane Dolly in July 2008. Hurricane Dolly caused about $500 million in insured losses, mostly to South Padre Island before coming ashore.

The National Flood Insurance Program has yet to be extended. The program provides flood insurance to nearly 700,000 Texans. The Texas Windstorm Insurance Association will not sell windstorm policies if Alex becomes a hurricane, according to the Insurance Council of Texas. Alex would be one of the earliest hurricanes ever to hit Texas, the council said.