EXHIBIT 23.3

                        CONSENT OF INDEPENDENT AUDITORS

We consent to the references to our firm under the caption "Experts" in
Amendment No. 1 to the Registration Statement (Forms S-3 No. 333-38606) and
related Prospectus of Blue Dolphin Energy Company (Blue Dolphin) for the
registration of 4,853,942 shares of its common stock and to the incorporation
by reference therein of our report dated March 10, 2000, with respect to the
consolidated financial statements of American Resources Offshore, Inc. included
in Blue Dolphin's Annual Report on Form 10-K, as amended, for the year ended
December 31, 1999, and our report dated April 2, 1999, with respect to the
consolidated financial statements of American Resources Offshore, Inc. included
in Blue Dolphin's Current Report on Form 8-K dated December 17, 1999, as amended
both filed with the Securities and Exchange Commission.

                             /s/ Ernst & Young LLP

New Orleans, Louisiana
September 6, 2000