EXHIBIT 99.1



                                  NEWS RELEASE


FOR IMMEDIATE RELEASE                                               May 13, 2005


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


BLUE DOLPHIN ENERGY COMPANY REPORTS FIRST QUARTER RESULTS

Blue  Dolphin  Energy  Company  reported a net loss of  $196,992  on revenues of
$359,030  for the  quarter  ended  March  31,  2005,  compared  to a net loss of
$519,606  on revenues of $358,931  for the  quarter  ended March 31,  2004.  The
improvement  in 2005  results  was  primarily  due to  gains  recorded  from the
placement  of  our  interests  in  certain   offshore  oil  and  gas  leases  of
approximately  $140,000, and the elimination of accrued interest pursuant to the
restructuring of a promissory note of approximately $132,000.


                                      (In thousands, except per share amounts)
                                                   Quarter Ended
                                                     March 31,
                                                                 Net Change
                                          2005        2004      2005 vs 2004
                                        --------    --------    ------------

        Revenues                        $    359    $    359    $        --
        Net loss                        $   (197)   $   (520)   $        323
        Net loss per common share
             Basic and diluted          $  (0.03)   $  (0.08)   $       0.05


There are currently 8,988,546 shares of common stock issued and outstanding.

Blue Dolphin  Energy Company is engaged in the gathering and  transportation  of
natural gas and condensate. Questions should be directed to G. Brian Lloyd, Vice
President,  Treasurer, at the Company's offices in Houston, Texas, 713-227-7660.
For further information see our Home Page at http://www.blue-dolphin.com.