<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM BLUE DOLPHIN ENERGY COMPANY AND SUBSIDIARIES' CONSOLIDATED
FINANCIAL STATEMENTS IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                       1,817,278
<SECURITIES>                                         0
<RECEIVABLES>                                  812,795
<ALLOWANCES>                                         0
<INVENTORY>                                     10,600
<CURRENT-ASSETS>                             2,678,172
<PP&E>                                      25,022,582
<DEPRECIATION>                               4,485,843
<TOTAL-ASSETS>                              24,665,517
<CURRENT-LIABILITIES>                        1,059,672
<BONDS>                                         10,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                  1,456,048
<COMMON>                                       520,530
<OTHER-SE>                                  17,789,303
<TOTAL-LIABILITY-AND-EQUITY>                24,665,517
<SALES>                                        343,389
<TOTAL-REVENUES>                             3,082,810
<CGS>                                          794,888
<TOTAL-COSTS>                                2,809,260
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              16,549
<INCOME-PRETAX>                                351,154
<INCOME-TAX>                                   147,607
<INCOME-CONTINUING>                            203,547
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   203,547
<EPS-PRIMARY>                                    0.000
<EPS-DILUTED>                                    0.003