Sept. 23 (Bloomberg) -- Hurricane Rita moved closer to the Texas and Louisiana border overnight, forcing almost 2 million people on both sides to flee a region already devastated by Katrina.

Rita's winds fell to about 140 mph last night as a Category 4 storm -- the same strength that Katrina was when it came ashore in Louisiana and Mississippi last month and killed more than 1,000 people. Texas highways heading inland from cities including Houston were jammed and flights were booked as companies closed up shops and residents sought safety.

The storm, which is spinning counter-clockwise, is expected to strike slightly west of the Louisiana-Texas border early tomorrow. That would put parishes in Louisiana that are to the east of the storm's center in the way of the strongest winds.

``That's the bad side to be on, so they're going to take the brunt of that wind,'' Louisiana National Guard Major Ed Bush said in a telephone interview. ``They're all heading north because we've run out of places to run.''

Texas Governor Rick Perry said more than 1.5 million residents have been asked to move inland. Four Louisiana parishes -- with about 300,000 residents, according to the Census Bureau -- have been asked to evacuate, Bush said.

The Federal Emergency Management Agency, still addressing criticism of its response to Katrina, has food, ice and staff at the ready, and relief agencies are gearing up to move in and help those who didn't evacuate. More than half of rigs and manned platforms in the Gulf, the base for 30 percent of U.S. oil production, were evacuated, pushing energy prices higher.

350 Miles From Galveston

Rita was located about 350 miles (560 kilometers) southeast of Galveston as of 10 p.m. local time, the National Hurricane Center said. The storm is moving west-northwest at 10 mph and may dump as much as 15 inches of rain in parts of southeast Texas and western Louisiana. Coastal storm-surge flooding of 15 feet to 20 feet above normal tide levels is possible near where Rita makes landfall.

Earlier yesterday Rita was a Category 5 hurricane with winds as high as 175 mph (282 kph). Katrina was also a Category 5 storm as it passed over the Gulf and weakened when it got closer to shore.

Rita probably will weaken more in the next 24 hours, although it will remain an ``extremely dangerous'' hurricane, the center said.

The storm shifted to the east early yesterday and is now expected to make landfall somewhere along the northern coast of Texas or the west coast of Louisiana, with Galveston just west of the center, according to the National Hurricane Center.

`Worst-Case Scenario'

``The worst-case scenario would be a direct hit on both Galveston and Houston,'' the most populated cities along that part of the Texas coast, said Kyle Beatty, a meteorologist at storm modeler Risk Management Solutions. ``The extent of the damage is going to be highly sensitive on the position at landfall. The farther east the landfall, relative to Galveston, the lower the potential for losses.''

The Texas and Louisiana coasts will begin to be battered by winds and rain late tonight, with the center of the storm -- its eye -- hitting early Saturday morning, he said.

The hurricane may stay a Category 4 or weaken to a Category 3. Katrina was one of 19 Category 4 or 5 storms to hit the U.S. since 1900, according to records. Category 4 storms have winds of 131 mph to 155 mph.

Galveston residents were ordered to leave yesterday. The city, about 50 miles southeast of Houston, is the site of the most deadly natural disaster in U.S. history, a hurricane that killed 8,000 to 12,000 in 1900. Galveston's 17-foot sea wall, which protects the island city of almost 60,000, could easily be topped by a storm as strong as Rita.

Evacuees

Almost all residents have heeded evacuation orders, city officials said during a press conference yesterday. Galveston Mayor Lyda Ann Thomas asked for 1,500 National Guard troops to assist in recovery efforts.

``We're going to experience a significant amount of flooding,'' city manager Steve LeBlanc said in an interview. ``We could for a short time be completely under, and then come out of it after a couple of hours. But we're more than likely to be completely flooded.''

U.S. Army Corps of Engineers spokesman Mitch Frazier said New Orleans should be able to weather the rain and storm surge that Rita could bring to the city, which is now 90 percent drained. The drainage and levy system along Lake Pontchartrain are prepared to handle as much as 6 inches of rain and as much as a 12-foot storm surge, Frazier said.

New Orleans

New Orleans -- where it has been raining -- and other parts of southeastern Louisiana may receive as many as 5 inches, the hurricane center said. The city is under a tropical storm warning, meaning such conditions, including winds of 39 to 73 mph, are possible in the next 24 hours.

The Texas governor said during a press conference that he requested 10,000 federal troops in Texas from President Bush to assist with search-and-rescue after Rita, in addition to 5,000 National Guard troops and 1,000 state troopers. Louisiana Governor Kathleen Blanco said she requested 30,000 troops to be deployed in Louisiana before Rita hits.

``Rita will hit Louisiana,'' Blanco said during a press conference. ``Rita was going to Texas and still will hit parts of Texas, but will hit us and possibly hit us directly.''

Rigs, Refineries, Platforms

A hundred trucks carrying meals, 150 trucks of ice and 200 trucks of water have been stockpiled throughout Louisiana in preparation for the hurricane, according to the governor's office. About 980 buses will aid evacuees and 450 more buses have been requested.

The threat Rita poses to rigs, refineries and platforms in the Gulf pushed the price of crude oil and gasoline higher. Gasoline for October delivery rose 8.63 cents yesterday, or 4.2 percent, to $2.1394 a gallon on the New York Mercantile Exchange, the highest close since Sept. 2. Futures are 59 percent higher than a year ago. Gasoline had the biggest move of any commodity.

``One of the biggest hurricanes ever is headed for the heart of America's refining capacity,'' said Jason Schenker, an economist at Wachovia Corp. in Charlotte. ``Prices will hit new records if we get reports of flooding and other destruction once the storm passes.''

Ninth-Named Storm

Rita, the ninth hurricane and 17th named storm of the six- month Atlantic hurricane season, marks the first time in 10 years that Atlantic tropical storms and hurricanes, named in alphabetical order, have reached the letter ``R.'' Hurricane center records show that three Category 5 storms have hit the U.S.

Katrina hit Louisiana on Aug. 29 with winds of 140 mph after earlier blowing at 175 mph as it moved over the warm waters of the Gulf. The storm submerged most of New Orleans and destroyed towns, including Gulfport and Biloxi in Mississippi.

``I've never seen so much destruction before,'' Major Bush of the National Guard said of Hurricane Katrina. ``It just goes and goes and goes through multiple states. It's already bigger than any state could handle on their own.''

To contact the reporter on this story: Jessica Brice in San Francisco at jbrice1@bloomberg.net

Last Updated: September 23, 2005 00:29 EDT