World oil fundamentals are in the early stages of a realignment to reflect the new reality of abundant energy supplies, NGP Energy Capital Management chief executive officer Ken Hersh told participants at the IPAA Private Capital Conference in Houston this week. This new outlook is replacing prior notions of resource scarcity.

In transitioning through what could be a 15-year period of resource abundance, “we’re in year two or maybe year three” of the process, said Hersh. His role with private-equity sponsor NGP Energy involves forecasting conditions out 10 years or ...