Natural gas supplies a safe bet.

• Position: Energy

Sudden price spikes have led to speculation that the U.S. is facing a critical shortage of natural gas. However, a study by the Energy Modeling Forum (EMF) at Stanford (Calif.) University concludes that gas supplies are likely to meet growing demand in coming decades if policymakers are able to strike a balance between environmental protection and the need for alternative energy sources.

"Recent volatile natural gas prices do not foreshadow a pending, long-term crisis in future natural gas supplies," assures Hillard Huntington, EMF's executive director and co-author of the study. "Industry will respond with more investment, and demand will respond to higher prices--provided that market participants are given the opportunity."

According to Huntington, the study is unique because it compared the results from seven different expert modeling teams on multiple market scenarios. The results were carefully reviewed end thoroughly evaluated by a working group of 45 experts from various universities, government agencies, and corporations. Uncertainty in the natural gas market is based on large fluctuations in gas prices during the past...