The shale gas revolution will be "very painful for many parts of the world," with the U.S. potentially the globe's new swing producer, the head of BP told CNBC on Tuesday.

The nascent shale industry—in which "unconventional" gas is drilled from the ground through hydraulic fracturing or "fracking"—is heavily dominated by the U.S. It has boomed in recent years, partly as a result of access to cheap financing, helping to push global oil prices to record lows.

BP CEO Bob Dudley told CNBC that the "revolution" meant the U.S. might supersede Saudi Arabia as the world's major swing oil producer, able to alter its production to balance supply and demand.

See the VIDEO Interview HERE