A flurry of visits by global energy leaders to Riyadh, brought into limelight the growing global shale output, its geopolitical and economic impact on this oil-rich region and the changing global energy horizon.

During his visit to Riyadh early last week, the visiting US Energy Secretary, Ernest Moniz, discussed long-term US energy interests with his Saudi counterparts.

With talks of Washington losing interest in the region, Moniz reportedly assured his Saudi counterparts of Washington’s long-standing and enduring interests in maintaining strong ties with Saudi Arabia and the Gulf region.

And in return Riyadh welcomed the ongoing surge in US shale oil production for its stabilizing effect on crude prices.

Later in the week, IEA Executive Director Maria van der Hoeven, came over discussing the effects of growing US shale oil production on global oil markets.

In the meantime, the IEA, IEF and Opec held its fourth symposium on global energy outlooks at IEF Headquarters in Riyadh last week, facilitating the sharing of insights and the exchange of respective views about the emerging energy market trends, the short, medium and long-term energy outlooks.

And a day prior to the symposium, the IEF organised an open day at its headquarters presenting the global energy perspectives — from Asia to the Americas.

While looking through her Crystal Ball, Kate Dourian, a senior editor with MEES, painted a rather bleak picture, underlining that Opec will ultimately have to face competition from within — on market prices if not on market share.

She also raised the issue of dwindling investments in the energy sector in the region, especially since the global focus was shifting to Africa.

Dourian was also apprehensive of the ongoing turmoil — from Egypt to Syria and Libya, on the emerging energy prospects. Interestingly, HE Abdul Wahab Derbal, the Algerian ambassador to Riyadh sitting next to me, asserted she was totally disconnected from the reality.

In sharp contrast to common perception, Ivan Sandrea, a senior partner in global oil and gas at Ernst & Young, however, raised many questions about the very viability, sustainability and prospects of shale.

Although the initial production rates from shale formations have improved in recent years, yet he emphasised that it declines rapidly after 12 months of operation and recovery factor continues to remain low and haunt the industry.

Constant capital expenditure, the varying cost of extraction — from $34 a barrel to $81 a barrel — make breakevens highly variable and unpredictable, he underlined.

And this was in sharp contrast to what Michael Schaal, Director, Office of Petroleum, Natural Gas and Biofuels analysis at the EIA was expected to present.

And although Schaal was unable to make it to Riyadh in time, yet his distributed presentation, pointed to the rapid gas and shale output rise in the United States.

Giving out the drilling productivity report, Schaal reminded that six shale plays account for nearly 90pc of domestic US oil output growth and virtually all domestic natural gas output growth over the last few years.

Takayuki Kusajima, project manager, energy affairs department, Research Division at Toyota Motor Corporation briefed the audience of efforts to lower the rolling resistance, weight reduction, improving aero dynamics and efficient power train to improve overall engine efficiency. He though pointed out that improvement in traffic flow is a must to boost efficiency.

And as the global energy fulcrum moves east, Victor Gao, the Vice Chairman of Sino-Europe United Investment, who at one point in time acted as the translator and interpreter to the Chinese leader Deng Zhao Ping, asserted that not only China was the largest global manufacturer of 220 major products, it also produced more than 22 million vehicles, including 20 million passenger cars, with most being sold in domestic markets.

Hence he reiterated that Chinese saying: We will go wherever there is oil.

In 2013, China consumed 518 tons and imported 300 million tons of crude and the figure was to rise significantly in the coming years, he underlined.

China also fully supported the possibility of American energy independence.

Gao reiterated: “This would help a major competitor away from the crude markets, ensuring greater stability.”