EXHIBIT 99.1


                           BLUE DOLPHIN ENERGY COMPANY


PRESS RELEASE

FOR IMMEDIATE RELEASE
January 14, 2008

BLUE DOLPHIN ENERGY COMPANY PROVIDES OPERATIONAL UPDATE

Houston,  January 14 / PRNewswire / -- Blue Dolphin Energy Company (NASDAQ:BDCO)
("Blue Dolphin"), an independent oil and gas company with operations in the Gulf
of Mexico engaged  primarily in the gathering and  transportation of natural gas
and  condensate  and  production  of oil and gas,  today  provided the following
operational update:

For the year 2007,  we benefited  from an increase in revenues from our existing
pipeline operations resulting from deliveries of production from new shippers on
both the Blue Dolphin System and the GA 350 Pipeline. The level of throughput on
the Blue Dolphin  System  increased due to deliveries  from three new wells this
past summer. The GA 350 Pipeline  throughput also increased from the addition of
two new wells, one in June and one in September.

The Blue Dolphin System is currently  transporting an aggregate of approximately
20 MMcf of gas per day from ten shippers.  A workover is underway on an existing
well and the drilling of an exploratory  well on an additional block is expected
to begin by late February 2008, indicating continued interest in the market area
by oil and gas  producers.  The GA 350  Pipeline is  currently  transporting  an
aggregate of  approximately  32 MMcf of gas per day from six shippers.  The Blue
Dolphin System and the GA 350 Pipeline have  significant  available  capacity to
meet the future needs of oil and gas producers in the market areas served by the
pipelines.

As we recently reported,  production  commenced in the High Island Block 115 B-1
well sidetrack #2 in late November of last year. We have a 2.5% working interest
and a 2.008% net revenue  interest in the well.  The  operator  reports that the
well has flowed at an average rate of  approximately 7 MMcf of gas per day since
November. The well is a sidetrack of the original B-1 wellbore in the block. The
production level has not yet stabilized.  We will provide further information as
operations  progress.  The operator of High Island  Block 37 reports  production
from two  wells in which we have an  interest,  flowing  at a  combined  rate of
approximately 4 MMcf of gas per day. We have a 2.8% working  interest and a 2.2%
net revenue interest in both of these wells.

In May of last year we appointed  Thomas Heath as  Executive  Vice  President to
head our business  development  and marketing  efforts.  Tom has been working to
increase the utilization of our existing  pipeline assets,  as well as to expand
our operations  through the  acquisition  of additional  assets in line with our
business strategy.  Our primary objectives are to grow our midstream business in
areas where we expect continued  exploration and development  activity and which
will enable us to benefit from price differentials  between markets. Our mission
is to build a profitable and sustainable  asset-based  midstream  business using
our  operating,  marketing  and  management  abilities.  Projects and  prospects
currently  in  progress  include  the  possible  expansion  of the Blue  Dolphin
Pipeline  System to access  alternative  markets and the  acquisition of several
pipeline assets.

We will report to you on our progress.

Contact:
Gregory W. Starks
Vice President, Treasurer and Secretary
713-227-7660





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.

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