Following the tape can leave analysts and investors feeling a bit woozy, maybe even schizophrenic, these days. Strong oil prices and surging production are creating wonderful cash-flow metrics, some nice investment ideas and smiles all around.

But flip the switch to natural gas, and frown lines take over. According to the Energy Information Administration, the U.S. was oversupplied by an average of 1.3 billion cubic feet a day over the past three years. In 2011, domestic supply averaged 68.5 Bcf a day against demand of only 66.8 Bcf.

The macro ...