In the following video, analysts Joel South and Austin Smith continue their discussion to give you both sides of the InterOil story. Parliamentary government in New Guinea is forcing the company to battle through tons of red tape, which cuts into the company's ability to start developing LNG export facilities. InterOil needs to seize the opportunity with extremely profitable Asian-Pacific markets right now, but government delays could allow competitors to sneak in and grab the profit. Joel cautions investors to watch how these government interests play out for the energy stock. 

InterOil is still a risky venture with a lot of upside potential. If InterOil is not of interest or if the company is carries too much risk, then you should check out our new free report, "The Motley Fool's Top Stock for 2012." In it, our chief investment officer identifies his favorite company for the year. To access the report before the rest of the market catches on, click here -- it's absolutely free.