<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BLUE
DOLPHIN ENERGY COMPANY AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS
AND INCORPORATED HEREIN BY REFERENCE.
</LEGEND>
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                         380,542
<SECURITIES>                                         0
<RECEIVABLES>                                1,021,557
<ALLOWANCES>                                         0
<INVENTORY>                                     18,335
<CURRENT-ASSETS>                             1,538,821
<PP&E>                                      26,001,531
<DEPRECIATION>                               5,074,758
<TOTAL-ASSETS>                              25,043,651
<CURRENT-LIABILITIES>                        1,101,280
<BONDS>                                      2,060,600
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        44,918
<OTHER-SE>                                  20,627,705
<TOTAL-LIABILITY-AND-EQUITY>                25,043,651
<SALES>                                        315,889
<TOTAL-REVENUES>                             2,796,091
<CGS>                                          596,882
<TOTAL-COSTS>                                1,520,855
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             159,589
<INCOME-PRETAX>                                116,443
<INCOME-TAX>                                  (62,955)
<INCOME-CONTINUING>                             53,488
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    53,488
<EPS-PRIMARY>                                      .01
<EPS-DILUTED>                                      .01