"I think that these new sources of oil and gas are welcomed by everyone, including Saudi Arabia," John Sfakianakis, chief investment strategist at Masic in Saudi Arabia, told Arab News.
His remarks follow a recent statement made to the the Financial Times by Khalid Al-Falih, chief executive of Saudi Aramco, that Saudi Arabia welcomes the boom in US shale production because it will reassure consumers about the reliability of oil supplies.
The CEO said the shale revolution had helped ease fears about excessive reliance on the Middle East, and encouraged governments to be more "pragmatic and rational" about energy policy.
Jarmo T. Kotilaine, a regional analyst, told Arab News that the US shale supplies will "obviously push out, potentially significantly, the depletion date of the national hydrocarbons reserves, which is significant in a world that looks likely to continue to depend on oil for a long time".
Kotilaine added: "It is also significant as a buffer in the face of growing demand and the increasing industrial use. It will likely necessitate changes in pricing policy in light of the higher cost of extraction but the debate on this had started in any event."
Kotilaine also said: "Depending on the distribution of the shale reserves, it may have implications on regional policy and development. The shale boom in the US is happening in some of the most sparsely populated parts of the country."
In the long term, Al-Falih also said that Saudi Aramco believes US production, while very significant for North America, will not take away its market.
"We always look at ourselves being in this business for generations to come, and want to position the industry for that long-term prosperity and harmony with society," Al-Falih told the Financial Times.
