Exhibit 99.1
                                                                    ------------

                                  NEWS RELEASE
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FOR IMMEDIATE RELEASE                                               May 14, 2004

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

BLUE DOLPHIN ENERGY COMPANY REPORTS FIRST QUARTER RESULTS

Blue Dolphin Energy Company  reported a loss of $519,606 on revenues of $358,931
for the quarter ended March 31, 2004, compared to a loss of $396,510 on revenues
of $320,974 for the quarter  ended March 31, 2003.  The decrease in 2004 results
was due to lower  throughput  on the  Company's  Blue Dolphin  Pipeline  system,
offset in part by higher revenues from oil and gas sales.






                                  (In thousands, except per share amounts)
                                               Quarter Ended
                                                  March 31,
                                                                 Net Change
                                            2004             2003         2004 vs 2003
                                        ------------     ------------     ------------
                                                                 
Revenues                                $        359     $        321     $         38
Net income (loss)                       $       (520)    $       (397)    $       (123)
Net income (loss) per common share
  Basic and diluted                     $      (0.08)    $      (0.06)    $      (0.02)



There are currently 6,712,438 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.