EXHIBIT 99.1


                           BLUE DOLPHIN ENERGY COMPANY

PRESS RELEASE

FOR IMMEDIATE RELEASE
March 31, 2008

BLUE DOLPHIN ENERGY COMPANY REPORTS FOURTH QUARTER AND YEAR END RESULTS

Houston,  March 31 / PRNewswire / -- Blue Dolphin Energy Company (NASDAQ:  BDCO)
("Blue Dolphin"), an independent oil and gas company with operations in the Gulf
of Mexico,  today  reported  financial  results  for the three and twelve  month
periods ended December 31, 2007.

For the three months ended December 31, 2007, Blue Dolphin  announced a net loss
of  $283,751  on  revenues  of  $750,306  compared  to net income of $547,874 on
revenues of $1,042,907 for the three months ended December 31, 2006. The decline
in net  income  was  primarily  due to an  anticipated  decline  in oil  and gas
production  and resulting  sales of  approximately  $381,000.  Also, in December
2006, a gain of $500,000  was recorded  associated  with the  extinguishment  of
debt.

                                        (In thousands, except per share amounts)
                                          Three Months Ended
                                            December 31,             Net Change
                                     ----------------------------   ------------
                                       2007            2006         2007 vs 2006
                                     --------        ---------      ------------
Revenues                             $   750         $   1,043        $  (293)
Net income (loss)                    $  (284)        $     548        $  (832)
Net income (loss) per common share
Basic                                $ (0.02)        $    0.05        $ (0.07)
Diluted                              $ (0.02)        $    0.05        $ (0.07)


For the twelve months ended December 31, 2007, Blue Dolphin announced a net loss
of $1,625,572 on revenues of  $3,011,817,  compared to net income of $912,864 on
revenues of $4,298,708  for the twelve months ended  December 31, 2006. The loss
for 2007 was  primarily  due to  reduced  revenues  from sales of oil and gas of
approximately  $1,841,000  resulting from an  anticipated  decline in production
levels, and increased  pipeline  operating  expenses of approximately  $662,000,
partially offset by increased revenues from pipeline operations of approximately
$555,000.  Increased  pipeline  operating  expenses were primarily the result of
unanticipated  costs  associated  with repairs to pipeline  assets and increased
insurance costs.  Increased revenues from pipeline operations were the result of
increased  throughput  from the  addition of seven  shippers on the Blue Dolphin
System and the GA 350  Pipeline,  and  increased  throughput  from two  existing
shippers on the Blue Dolphin System during 2006 and 2007.




                                        (In thousands, except per share amounts)
                                          Three Months Ended
                                            December 31,             Net Change
                                     ----------------------------   ------------
                                       2007            2006         2007 vs 2006
                                     --------        ---------      ------------
Revenues                             $   3,012       $   4,299        $  (1,287)
Net income (loss)                    $  (1,626)      $     913        $  (2,539)
Net income (loss) per common share
Basic                                $   (0.14)      $    0.08        $   (0.22)
Diluted                              $   (0.14)      $    0.08        $   (0.22)



There are currently 11,624,447 shares of common stock issued and outstanding.





Blue Dolphin  Energy Company is engaged in the gathering and  transportation  of
natural  gas  and  condensate  and  production  of  oil  and  gas.  For  further
information visit the Company's website at http://www.blue-dolphin.com.

Contact:
Michael J. Jacobson
President
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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