In some respects, [[BP]] is certainly doing well as it focuses on continued expansion and growth. There are several news stories suggesting instability in the company’s future, however, and these will likely outweigh the more positive news items. As a result, I believe BP will be facing losses in the near future.

BP may be facing great legal complications in the near future as the government believes the company may have provided false information about the extent of the Deepwater Horizon oil spill from two years ago. BP’s estimate of how much oil leaked is 20-50% lower than the estimates from the government. The company’s engineers had refused to provide requested information, which has already led to legal action.

Future court cases may increase the fines already facing BP as a result of this oil spill. For example, if BP is found to have been negligent in this case, the fine will possibly change from $1,000 per gallon to $4,000 per gallon. This would be major due to the extent of the oil spill, and since the situation is currently so uncertain, it would be a poor time to invest in BP. Investors need to keep a close eye on how this plays out. Regardless, it will have a relatively immediate impact on the stock, as investors will grow worried by the possibility of this case leading to disaster. After all, such a great alteration would be equivalent to being fined for three more massive oil spills. To continue reading, click here.