Exhibit 99.1

                                  NEWS RELEASE
                                  ------------
FOR IMMEDIATE RELEASE                                            August 14, 2003

Houston, Texas - Blue Dolphin Energy Company (NASDAQ Symbol: BDCO)

BLUE DOLPHIN ENERGY COMPANY REPORTS IMPROVED SECOND QUARTER RESULTS

Blue  Dolphin  Energy  Company  reported  net income of  $470,576 on revenues of
$1,001,942  for the  quarter  ended  June 30,  2003,  compared  to a net loss of
$389,588 on revenues of $1,046,938  for the quarter ended June 30, 2002.  Second
quarter  2003  revenues  include  approximately   $745,000  from  the  Company's
reversionary  working  interest  in the High Island Area Block A-7 field that it
received in late April 2003. For the quarter, the improved results are primarily
due to lower depletion  expense of approximately  $.2 million as a result of oil
and gas  properties  sold in the  second  half of  2002,  a $.4  million  or 50%
reduction in overhead costs and a gain of $.3 million  recorded from a reduction
to the Company's provision for abandonment costs.




                                  (In thousands, except per share amounts)
                                                Quarter Ended
                                                  June 30,
                                                  --------
                                                                            Net Change
                                           2003              2002          2003 vs 2002
                                      --------------    --------------     ------------
                                                                  
Revenues                              $        1,002    $        1,047     $        (45)
Net income (loss)                     $          471    $         (390)    $        861
Net income (loss) per common share
     Basic                            $         0.07    $        (0.06)    $       0.13
     Diluted                          $         0.07    $        (0.06)    $       0.13



For the six months  ended June 30,  2003,  the  Company  reported  net income of
$74,066 on  revenues of  $1,322,916,  compared  to a net loss of  $1,312,999  on
revenues of $1,954,504  for the six months ended June 30, 2002.  The decrease in
revenues in 2003 was due to sales of oil and gas  properties  in the second half
of 2002,  offset in part by oil and gas revenues from the High Island Area Block
A-7 field.  The improvement in 2003 results was due primarily to lower depletion
expense of $.5 million,  an asset  impairment and associated bad debt expense of
$.5 million  recorded in 2002 and a gain  recorded in 2003 from the reduction to
the Company's provision for abandonment costs.






                                  (In thousands, except per share amounts)
                                              Six Months Ended
                                                  June 30,
                                                  --------
                                                                            Net Change
                                           2003              2002          2003 vs 2002
                                      --------------    --------------     ------------
                                                                       

Revenues                              $        1,323    $        1,955     $       (632)
Net income (loss)                     $           74    $       (1,313)    $      1,387
Net income (loss) per common share
     Basic                            $         0.01    $        (0.21)    $       0.22
     Diluted                          $         0.01    $        (0.21)    $       0.22




There are currently 6,649,190 shares of common stock issued and outstanding.

Blue Dolphin  Energy Company is engaged in the gathering and  transportation  of
natural gas and  condensate,  and the acquisition and development of oil and gas
properties.  Questions  should be  directed  to  Haavard  Strommen,  Manager  of
Finance, at the Company's offices in Houston, Texas,  713-227-7660.  For further
information see our Home Page at http://www.blue-dolphin.com.

Certain of the  statements  included  in this  press  release,  which  express a
belief,  expectation or intention,  as well as those regarding  future financial
performance or results, or which are not historical facts, are "forward-looking"
statements as that term is defined in the Securities Act of 1933, as amended and
the Securities  Exchange Act of 1934, as amended.  The words  "expect",  "plan",
"believe",  "anticipate",  "project",  "estimate",  and similar  expressions are
intended  to  identify   forward-looking   statements.   These   forward-looking
statements  are  not  guarantees  of  future  performance  or  events  and  such
statements involve a number of risks,  uncertainties and assumptions,  including
but not limited to  industry  conditions,  prices of crude oil and natural  gas,
regulatory changes,  general economic conditions,  interest rates,  competition,
and  other  factors.  Should  one  or  more  of  these  risks  or  uncertainties
materialize or should the underlying assumptions prove incorrect, actual results
and outcomes may differ  materially from those indicated in the  forward-looking
statements.  Readers  are  cautioned  not  to  place  undue  reliance  on  these
forward-looking statements,  which speak only as of the date hereof. The Company
undertakes  no  obligation to republish  revised  forward-looking  statements to
reflect  events  or  circumstances  after  the date  hereof  or to  reflect  the
occurrence of unanticipated events.