Tropical Storm Dolly impacts Gulf oil, natural gas output

Tropical Storm Dolly has so far impacted about 5 percent of Gulf oil and natural gas output, according to a Reuters report.

Dolly became a hurricane Tuesday afternoon and was expected to come ashore near the Texas-Mexico border about mid-day Wednesday. It represents the first serious threat to the U.S. Gulf of Mexico coast this year.

The Gulf provides 25 percent of U.S. oil output and 15 percent of U.S. natural gas production.

Content Continues Below

Industry reports at least 62,000 barrels per day of offshore oil and natural gas liquids production shut and 200 million cubic feet per day of offshore natural gas shut, according to Reuters.