SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 8-K


                                 CURRENT REPORT


                       PURSUANT TO SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                Date of report: (date of earliest event reported)
                      December 15, 2006 (December 12, 2006)

                           Blue Dolphin Energy Company
             (Exact name of registrant as specified in its charter)




           Delaware                       0-15905                 73-1268729
(State or other jurisdiction of   (Commission file number)    (I.R.S. Employer
 Incorporation or organization)                              Identification No.)


                  801 Travis, Suite 2100, Houston, Texas 77002
                    (Address of principal executive offices)


                                 (713) 227-7660
                           (Issuer's telephone number)



Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

|_|  Written communication pursuant to Rule 425 under the Securities Act (17 CFR
     230.425)

|_|  Soliciting  material pursuant to rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)

|_|  Pre-commencement   communications  pursuant  to  Rule  14d-2(b)  under  the
     Exchange Act (17 CFR 240.14d-2(b))

|_|  Pre-commencement   communications  pursuant  to  Rule  13e-4(c)  under  the
     Exchange Act (17 CFR 240.13e-4(c))





ITEM 5.02   DEPARTURE OF DIRECTORS OR CERTAIN  OFFICERS;  ELECTION OF DIRECTORS;
            APPOINTMENT  OF  CERTAIN  OFFICERS;   COMPENSATORY  ARRANGEMENTS  OF
            CERTAIN OFFICERS.

         On December  13,  2006,  Blue Dolphin  Energy  Company (the  "Company")
announced  that John N.  Goodpasture  was appointed to the Board of Directors of
the Company  effective  December 12,  2006.  Mr.  Goodpasture  will serve on the
Compensation Committee of the Board of Directors.

         There is no arrangement or  understanding  between Mr.  Goodpasture and
any other persons pursuant to which Mr.  Goodpasture was selected as a director.
There are no material  relationships or transactions between Mr. Goodpasture and
the Company or any of the  Company's  directors,  executive  officers,  or major
security  holders,  or the  immediate  family  members  of any such  person.  In
addition,  there are no family  relationships  between Mr.  Goodpasture  and any
director or executive officer of the Company.

         Mr.  Goodpasture will receive $12,000 in fees annually for his services
on the Board.  The fees are paid out $3,000  every three  months;  two  quarters
being paid in cash and two quarters  paid in  equivalent  value of common stock.
Mr.  Goodpasture  will receive a pro rata payment for the period ending February
15, 2007, based on the portion of the period that he was a member of the Board.

         A copy  of  the  Company's  press  release  dated  December  13,  2006,
announcing the appointment of Mr.  Goodpasture as a director is filed as Exhibit
99.1 hereto and incorporated herein by reference.

ITEM 9.01   FINANCIAL STATEMENTS AND EXHIBITS.

            (c)         Exhibits

                        99.1        Blue Dolphin press  release  dated  December
                                    13, 2006  announcing  appointment of John N.
                                    Goodpasture as a director.









                                    SIGNATURE



         Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended,  the  registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.

Date:   December 15, 2006.

                                         BLUE DOLPHIN ENERGY COMPANY



                                         By: /s/ GREGORY W STARKS
                                            ------------------------------------
                                            Gregory W. Starks
                                            Vice President, Treasurer, Secretary

























                                INDEX TO EXHIBITS


Exhibit           Description of Exhibit
-------           ----------------------

99.1              Blue Dolphin press release dated December 13, 2006  announcing
                  appointment of John N. Goodpasture as a director.