ASEAN Energy Demand: Trends and Structural Change 9789814379069

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Table of contents :
Contents
List of Figures
List of Tables
Preface
1. Introduction
2. Trends in Commercial Energy Consumption
3. Economic Growth and Energy Demand
4. Patterns of Non-Commercial Energy Consumption
5. Structure of Sectoral Energy Demand
6. Summary and Conclusion
Appendix A
Appendix B
Bibliography
Data Sources
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ASEAN Energy Deman d

The Institute of Southeast Asian Studies was established as an autonomous organization in May 1968. It is a regional research centre for scholars and other specialists concerned with modern Southeast Asia, particularly the multi-faceted problems of stability and security, economic development, and political and social change. The Institute is governed by a twenty-two-member Board of Trustees comprising nominees from the Singapore Government, the National University of Singapore, the various Chambers of Commerce, and professional and civic organizations. A ten-man Executive Committee oversees day-to-day operations; it is chaired by the Director, the Institute's chief academic and administrative officer.

ASEAN Energy Demand Trends and Structural Change

Ang Beng Wah National University of Singapore

I5EA5

INSTITUTE OF SOUTHEAST ASIAN STUDIES

Published by Institute of Southeast Asian Studies Heng Mui Keng Terrace Pasir Panjang Singapore 0511

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the Institute of Southeast Asian Studies. © 1986 Institute of Southeast Asian Studies

Cataloguing in Publication Data Ang Beng Wah ASEAN energy demand: trends and structural change. 1. Energy consumption-ASEAN. I. Title. HD9502 A92A58 1986 ISBN 9971-988-43-7 (hard cover) ISBN 9971-988-56-9 (soft cover)

The responsibility for facts and opinions expressed in this publication rests exclusively with the author and his interpretations do not necessarily reflect the views or the policy of the Institute or its supporters. Typeset by Times Graphics, Singapore Printed in Singapore by Chong Moh Offset Printing Pte Ltd

Contents

List of Figures vii List of Tables viii Preface x 1

Introduction

2

Trends in Commercial Energy Consumption

1

6

Regional Commercial Energy Consumption 6 Consumption in Individual Countries 10 Growth of Commercial Energy Consumption 23 Electricity 27 3

Economic Growth and Energy Demand

34

Energy and Economic Growth 34 Energy Prices 39 Income and Price Elasticities 44 Inter-Country Comparisons of Energy-Output Ratio 4

Patterns of Non-Commercial Energy Consumption Main Consumption Characteristics 55 Measuring Non-Commercial Energy Consumption Non-Commercial Energy Demand Estimation 62 The Demand-Supply Balance 68

5

Structure of Sectoral Energy Demand

49

55 60

72

The Changing Structure of Sectoral Energy Demand 72 Transport 80 Industry 90 Household and Commercial 101 The Energy Sector and Fuels for Non-Energy Use 106 6

Summary and Conclusion

110

Summary of Findings 110 Implications on Energy Demand Management

117

Appendix A 124 Time-Series Energy Consumption Data: Definitions and Methodology Appendix B 132 Sectoral Energy Demand: Data Collection, Definitions and Methodology Bibliography

145

Data Sources

150

List of Figures

2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 3.1

ASEAN: Commercial Energy Consumption by Fuel Type, 1960-80 ASEAN: Fuel Shares in Commercial Energy Consumption, 1960-80 Indonesia: Commercial Energy Consumption by Fuel Type, 1960-80 Indonesia: Fuel Shares in Commercial Energy Consumption, 1960-80 Malaysia: Commercial Energy Consumption by Fuel Type, 1960-80 Malaysia: Fuel Shares in Commercial Energy Consumption, 1960-80 Philippines: Commercial Energy Consumption by Fuel Type, 1960-80 Philippines: Fuel Shares in Commercial Energy Consumption, 1960-80 Singapore: Commercial Energy Consumption by Fuel Type, 1960-80 Singapore: Fuel Shares in Commercial Energy Consumption, 1960-80 Thailand: Commercial Energy Consumption by Fuel Type, 1960-80 Thailand: Fuel Shares in Commercial Energy Consumption, 1960-80 Commercial Energy Consumption per Capita in ASEAN Countries, 1960-80 GDP per Capita in ASEAN Countries, 1960-80 Commercial Energy Consumption in ASEAN Countries and Overall Consumption, 1960-80 Country Shares in Commercial Energy Consumption in ASEAN, 1960-80 Electricity Production in ASEAN Countries and Total Production in ASEAN, 1960-80 Electricity Production per Capita in ASEAN Countries, 1960-80 Shares of Commercial Energy Consumption for Electricity Generation in ASEAN Countries, 1960-80 Commercial Energy Consumption per Unit of GDP for ASEAN Countries, 1960-80

9 9 11 11 15 15 17 17 20 20 22 22

26 26 28 28 30 30 32 36

List of Tables

1.

2.1 2.2 2.3

2.4 3.1 3.2 3.3

Units and Conversion Factors Total Oil Consumption and Total and per Capita Commercial Energy Consumption in ASEAN, Developing Countries, OECD and the World, 1980 Share of ASEAN in World Commercial Energy Consumption, 1960-80 Rates of Growth of Commercial Energy Consumption and GDP, and Energy Coefficients in ASEAN Countries and Various Other Countries, 1960-73 and 1974-80 Rates of Growth of Electricity Production and Electricity Coefficients in ASEAN Countries, 1960-73 and 1974-80 Real Import Prices of Crude Oil in Indices Estimated Real Fuel Prices in Indices for ASEAN Countries Malaysia: Real and Current Prices of Petroleum Products, Imported Crude Oil and Electricity,

1970-80 3.4 3.5 3.6 3.7 4.1 4.2 4.3 4.4 4.5

Indonesia: Domestic Prices of Petroleum Products, Costs of Living Index in Jakarta and Crude Petroleum Prices, 1972-80 Prices of Petroleum Products 1980: Indonesia and Pulau Bukom, Singapore Estimates of Income and Price Elasticities of the Demand for Commercial Energy Energy-Output Ratios for ASEAN Countries and Selected Industrialized Countries Distribution of Households by Type of Fuels Used for Cooking in ASEAN Countries Energy Use in Cooking in Rural Households in Indonesia, 1980 Malaysia: Variations in Energy Needs in Domestic Cooking According to Household Income Estimates of Domestic Energy Requirements in Cooking in Rural Areas of ASEAN Countries, and in Singapore Commercial Energy and Estimated Non-Commercial Energy Consumption in ASEAN Countries

4 7 8

24 29 40 41 42 44 46 47 51

57 59 60 64 66

4.6 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 A1 B1 B2 B3 B4

Non-Commercial Energy Consumption Estimates for ASEAN Countries by Various Studies Energy Consumption by Sector in ASEAN Countries, 1960, 1972 and 1980 Cross-Country Comparisons of Energy Consumption by Sector 1980 Electricity Consumption by Sector in ASEAN Countries, 1960, 1972 and 1980 Energy Use for Transport and Related Transport Statistics in ASEAN Countries, 1980 Ratio of Gasoline to Motor Diesel Prices in ASEAN Countries Estimated· Energy Intensities of Passenger and Freight Transport by Mode in the ASEAN Region, 1980 Modal Split of Passenger Traffic and Freight Traffic in Malaysia, 1980 Commercial Energy Consumption in Industry in ASEAN Countries, 1980 Estimated Rates of Growth of Industrial Energy Use and Industrial Output in ASEAN Countries, 1960-72 and 1972-80 Structure of Manufacturing Industry in ASEAN Countries Energy per Value-Added by Sector in Industry Energy Costs as a Percentage of Industrial Production Costs Average per Capita Energy Consumption in the Household and Commercial Sector in ASEAN Countries, 1980 Variations in Household Electricity Use According to Household Income, Malaysia Household Electricity Usage in Singapore Average Household Energy Consumption and Mean Household Income by Type of Premise, Singapore Energy Own-Use and Losses in the Energy Sector in ASEAN Countries, 1980 Energy Equivalents of Fuels ASEAN Energy Balance: General Format ASEAN Energy Balance, 1960 ASEAN Energy Balance, 1972 ASEAN Energy Balance, 1980

67 74 78 79 82 87 88 89 90 92 96 98 100 102 103 104 105 107 131 141 142 143 144

Preface

Energy demand is one of the most difficult areas to study on energy in developing countries because of the paucity of good data. It is, therefore, not surprising that our current understanding of energy use in developing countries is fairly limited compared to that for the industrialized world. Yet knowledge of the structure and the mechanisms of change in energy use is crucial to energy planning and policy formulation. In particular, it assists planners and policy makers in assessing future energy requirements, fuel substitution, and policies for energy production, use and conservation. As a contribution to energy demand studies in developing countries,' this book deals with how energy has been used in five ASEAN countries, namely, Indonesia, Malaysia, the Philippines, Singapore and Thailand. It concentrates on four major aspects of energy use: trends in commercial energy consumption, energy demand and economic growth, non-commercial energy use, and energy consumption by end-use. The analysis is based on energy data collected from sources which until now are highly scattered and uncoordinated. One main objective is to provide a description of the changes in the structure of energy demand that accompany the growth of these economies and to analyse their interactions. Another objective is to make inter-country comparisons to identify systematic differences in energy use. By accounting energy demand in a harmonized manner, this book is able to provide a consistent picture of the mechanisms of change in energy use in these countries. The main body of this work was completed in 1984 at the Institute of Southeast Asian Studies (ISEAS) but much of the energy data was collected and analysed between 1977 and 1983 while I was with the Cambridge Energy Research Group (CERG) in the Cavendish Laboratory of Cambridge University. I am indebted to several individuals who have contributed their time or sources of information, without whom this book could not have been completed in its present form. I wish to thank Richard Eden and Richard Bending of CERG, Joe Stanislaw of Cambridge (USA) Energy Research Associates, Sir Austin Robinson of Cambridge University, Gareth Price, Alan Clarke and Hans DuMouline (formerly) of Shell International, John Mitchell of British Petroleum, and William Humphrey and Irfan ul Haque of the World Bank. I am grateful to ISEAS for providing me with financial support and to the Director, Kernial Singh Sandhu, for his kind assistance at all times. My thanks should also go to Agustin

Kintanar, Jr. and Hans Christoph Rieger of the ASEAN Economic Research Unit of ISEAS. All the persons mentioned are, of course, by no means responsible for my views and conclusions expressed in this book. The study relies heavily on official data, both published and unpublished, and unpublished data kindly provided by several energy industries. I am indebted to Shell International and British Petroleum and their subsidiaries in the ASEAN region, ESCAP of the United Nations, the World Energy Conference, the National Electricity Board of Malaysia, Petronas, the National Energy Administration of Thailand, the Public Utilities Board of Singapore, and the Ministry of Energy of the Philippines. Last, but not least, I wish to thank Triena Ong and Pauline Khng, respectively managing editor and editor of ISEAS, for performing the complicated task of manuscript co-ordination, and the support staff of the Institute. Ang Beng Wah

Introduction

The increase in international oil prices that took place during the 1970s gave rise to widespread problems of energy adjustment throughout the world. Higher oil prices lead to accelerated inflation, balance of payments problems, slower economic growth, and through the coupling of the energy system, affect almost every aspect of economic activity. The high cost of energy supplies and the concern about the availability of oil have brought pressure on many countries to reexamine their national energy strategies. To reduce the cost of energy, energy conservation and oil substitution are now given high priority in energy planning. The evaluation of the scope for energy conservation and oil substitution, and hence the appropriate actions that should be taken, entail a thorough understanding of the national patterns of energy consumption. Nevertheless the extent of our present knowledge of energy consumption in the developing countries is fairly limited, far limited than for the industrialized countries. There is still great potential for growth in the developing countries, and the major part of the future increase in world energy demand is expected to arise from their needs. There will be increased competition between the developing world and the industrialized world, and among the developing countries for world energy resources. The worldwide balance between supply and demand eventually determines the price of energy, and shortages will lead to higher prices. Growth in the developing countries will be seriously disrupted or frustrated by energy shortages and higher energy prices. This monograph attempts to augment our knowledge of energy use in a group of fast growing developing countries in a systematic way. These countries are the five member states of the Association of Southeast Asian Nations (ASEAN), namely, Indonesia, Malaysia, the Philippines, Singapore and Thailand. (Brunei, which became the sixth member state of the association in January 1984, is not included in this study.) They differ considerably in energy resource endowment, but in domestic energy demand management they all seek to reduce oil use and conserve energy. Indonesia and Malaysia are net

2

ASEAN ENERGY DEMAND

oil exporters. The two countries have been looking for ways to reduce domestic oil demand, and by so doing increase oil export potential. Singapore does not possess conventional energy resources of any form. Its main energy strategy has been to promote the rational and efficient use of energy without impeding economic growth. The proven reserves of conventional energy sources, especially oil, in the Philippines and Thailand are fairly limited. The bulk of their energy needs have so far been met through imports. The rising cost of oil imports, which has made increasing claims on their export earnings, makes oil substitution and conservation a primary domestic concern. The countries of ASEAN also differ widely in their size and income. In 1980 population varied from 2.4 million in Singapore to 148 million in Indonesia. Singapore is a city state with a very small rural population, while Indonesia and the Philippines consist of thousands of islands separated by large distances. The 1980 per capita gross domestic product (GDP) ranged from US$480 in Indonesia to US$4380 in Singapore. Great disparity also exists between these countries in respect of stages of development and structure of production. These diversities contribute to inhomogeneity in their energy demand patterns, though some similarities do exist. Through a better understanding of their historical and existing patterns of energy consumption, wiser policies for energy use and conservation will emerge. It would also allow more plausible assumptions to be made in energy demand forecasting. This study of energy demand in the ASEAN countries would also shed light on the patterns of energy use in other developing countries. The study deals primarily with four aspects of energy demand between 1960 and 1980: trends in commercial energy consumption, economic growth and energy demand, non-commercial energy use, and energy consumption by end-use. The patterns of historical energy consumption in relation to economic growth, energy prices, substitution of fuels and structural change of production are examined. For example, how the relation between GDP and energy demand changed, whether energy use per unit of output increased during industrialization as energy intensive industries were more rapidly developed than other parts of the economy. Also, how the fairly constant or falling energy costs in the 1960s and higher crude oil prices and increasing costs for most forms of energy after 1973 altered the relation. The structure of energy use is examined based on time-series and cross-sectional analyses comparing fuel use and sectoral demand. Energy demand is broken down by major energy consuming sectors, namely, transport, industry, household and commercial, and the energy sector. The varied demands for energy in these major energy consuming sectors and their relation to economic activity are analysed. Factors that have led to the changed character of the demands over time are identified, and comparisons of energy end-uses are made between countries. Non-commercial fuels are included in view of the fact that they

INTRODUCTION

3

have been widely used in the ASEAN region. Commercial energy is energy obtained from organized energy supply industries such as petroleum products, coal, natural gas and electricity. Noncommercial energy is obtained from scattered, and less organized sources such as wood, crop residues and charcoal. Besides commercial and non-commercial energy, animal power and human labour are energy sources in production activities such as soil preparation, cultivation, harvesting and rural transport. Animate energy provides a significant part of the rural energy needs in the lower income ASEAN countries. There are, however, no satisfactory ways of measuring this category of energy use. It is therefore not considered in this study. Non-conventional energy, such as solar power and biogas, has made little contribution to ASEAN energy demand and is not considered here. The main difficulty in studying the energy demand patterns of the ASEAN countries, as is the case for most developing countries, is the problem of data availability. There are no central data sources for ASEAN comparable to those for the OECD countries published by the International Energy Agency (see Data Sources). For individual countries data are available in various national publications, but they are highly scattered and usually uncoordinated. The data shortage combined with problems of accuracy, definitions, accounting conventions and conversion factors complicate time-series analysis and inter-country comparisons. In carrying out this study considerable effort was put in energy data collection. The problems and the details of the data used are described in Appendices A and B. The reliability of the data inevitably varies; some are well-documented (for example, electricity generation and use) while others have been estimated by the author based on various sources which, not uncommonly, give conflicting figures (for example, petroleum product consumption in the industrial sector). For the latter a certain margin of error is unavoidable, and they must therefore be treated with greater caution. Unless otherwise specified, financial units are expressed in US dollars at current prices. As to energy measurement there are numerous units that are commonly used in energy analysis. Those adopted here are multiples of tonnes of oil equivalent (TOE). Table 1.1 summarizes the energy equivalents for TOE and other commonly used energy units, and some useful conversion factors. Energy demand can be measured in three different ways, namely, primary energy demand, energy demand in delivered energy terms, and useful energy demand. Primary energy demand measures the total energy input into the economy in terms of coal, crude oil, natural gas, primary electricity, and non-commercial fuels. It assesses the total primary fuel input before allowing for conversion losses and for transmission and distribution losses. Delivered energy (or secondary energy) is the demand on a heat supplied basis. It measures the energy supplied to final users either directly as a primary fuel (for example, coal and natural gas) or after conversion (for example,

4 ASEAN ENERGY DEMAND

Table 1 Units and Conversion Factors (A)

Energy Units

Energy units are expressed in multiples of tonnes of oil equivalent (TOE) 1 TOE = 10 Gcal (gigacalories) or 42 GJ (gigajoules) 1 TOE = 1000 KGOE (kilograms of oil equivalent) 1 TTOE (thousand tonnes of oil equivalent) = 1000 TOE 1 MTOE (million tonnes of oil equivalent) = 1000 TTOE 1 MTOE = 20,000 barrels per day of oil equivalent for a year (B)

Approximate Energy Equivalents of Fuels

1 tonne of coal (average) = 0.60 TOE 1000 cubic metres of natural gas (average) = 0.83 TOE 1 tonne of liquefied natural gas (average) = 1.17 TOE 1 tonne of wood (average) = 0.38 TOE (thermal value) = 0.10 TOE (petroleum replacement value) 1 GWh (gigawatt-hours) = 86 TOE (thermal value) 1 GWh of hydro generation expressed in primary energy terms is equivalent to 287 TOE (assuming 30 per cent generation efficiency). (C)

Prefixes Used with the International System of Units (51 Units)

Prefix Kilo Mega Giga Tera Peta Exa (D)

Symbol k M G T P E

Power 3

10 10 6 10 9 10 12 10 15 10 18

Some Useful Conversion Factors

1 barrel = 159 litres 1 British gallon = 4.55 litres 1 US gallon = 3.79 litres 1 ton = 1.016 tonnes 1 cubic metres= 37.88 cubic feet 1 kWh (kilowatt-hours) = 3600 kJ (kilojoules) 1 calorie= 4.1868 joules

Examples kW (kilowatt) MW (Megawatt) Gcal (Gigacalories) TWh (Terawatt-hours) PJ (Petajoules) EJ (Exajoules)

INTRODUCTION

5

gasolines and electricity). Because of conversion losses, distribution and transmission losses, and fuel consumed by the energy supply industries, it is always less than primary energy demand. Useful energy demand measures the final amount of heat or power available to final users excluding the losses that occur during further conversion into space or process heat or motive power by the users. Because of losses in end-use equipment, it is usually less than delivered energy. For comparative purposes energy demand data for several industrialized countries are shown in certain parts of this study. Countries most often quoted are West Germany, Japan, the United Kingdom and the United States.

Trends in Commercial Energy Consumption

Regional Commercial Energy Consumption Before discussing energy consumption patterns in individual ASEAN countries, it is useful to put the ASEAN region in perspective by comparing its energy consumption with that of other world regions. The relevant data for 1980 are summarized in Table 2.1. It shows the total and per capita commercial energy consumption, and oil consumption in ASEAN, the developing countries, OECD and the world. Commercial energy consumption in ASEAN totalled 67 million tonnes of oil equivalent (MTOE), amounting to 7.3 per cent of the consumption in the developing countries or 1.0 per cent of the world's total. With 6 per cent of the world's population living in the region, the average energy consumption per head of population in ASEAN was relatively low. It was below the average for the developing countries, and was only one-sixth of world average. Oil accounted for about 90 per cent of ASEAN's total commercial energy consumption. Only two-thirds of the total commercial energy used in the developing countries and half in the OECD were derived from oil. The greater reliance on oil led to a larger share of world oil consumption than of world commercial energy arising from ASEAN. In 1980 ASEAN accounted for 2 per cent of world oil consumption, or 10 per cent of the oil consumption in the developing countries. Despite low average energy consumption per head of population the ASEAN region has experienced a substantial increase in commercial energy demand over the past two to three decades. The overall rate of growth outstripped that of world demand. As a result, ASEAN increased its share in world energy use. In 1960 ASEAN's total commercial energy consumption amounted to less than 0.5 per cent of the world's total, whereas it was 1.0 per cent in 1980 (see Table 2.2). In summary, ASEAN energy use was characterized by a low but rapidly rising demand for commercial energy, and a high dependence on oil. 6

TRENDS IN COMMERCIAL ENERGY CONSUMPTION

7

Table 2.1 Total Oil Consumption and Total and per Capita Commercial Energy Consumption in ASEAN, Developing Countries, OECD and the World, 1980 Total commercial energy consumption (MTOE) A SEAN Developing countries OECD World ASEAN as% of developing countries ASEAN as% of world

Per capita commercial energy consumption (TOE)

Total oil consumption (MTOE)

Oil as% of commercial energy consumption

67

0.26

60

90

915 3819 6904

0.42 4.92 1.55

596 1873 3002

65 49 43

7.3%

62%

10.1%

1.0%

17%

2.0%

Notes: (1)

Oil consumption and total energy consumption comprise inland consumption plus aviation fuels, marine bunkers, refinery fuel use, and fuels for non-energy use.

(2)

Developing countries include members of OPEC but exclude countries with centrally planned economies.

Sources: For ASEAN, author's estimates, see Table B4 for details; for developing countries and OECD, Eden et al. (1983); for world, British Petroleum (1982). See also Ang (1985b).

Figures 2.1 and 2.2 show the overall commercial energy consumption in ASEAN between 1960 and 1980 by fuel type and by fuel share. The details of the time-series are described in Appendix A. Over the twenty-year period the total consumption increased by a factor of five, from about 10 MTOE in 1960 to about 60 MTOE in 1980. The consumption of 67 MTOE given in Table 2.1 includes bunker fuels and fuels for non-energy use, but they are not included in Figure 2.1. Coal, natural gas and primary electricity (that is, hydro and geothermal electricity in ASEAN) consumptions increased in absolute terms but declined in share. The dominance of petroleum products in energy use is very clearly shown in Figure 2.2. Oil which exists in liquid form, has a high calorific value, and is easy to transport and use. Until 1973, the world oil industry had been strongly influenced by an inherent surplus in production throughout most of its history (Eden et al., 1981). With more available than was wanted at the current price, oil had substituted for other fuels and become the single most important energy source in many countries,

8

ASEAN ENERGY DEMAND

including the ASEAN countries. Although the world oil outlook changed dramatically in 1973, the contribution from this energy source in ASEAN energy use declined only marginally between 1973 and 1980. This is due to the fact thaL most major energy projects have long gestation period and take some six to ten years to plan, design, obtain approvals and construct. Those planned or constructed after 1973 in ASEAN for oil substitution were mostly not completed by 1980. Table 2.2 Share of ASEAN in World Commercial Energy Consumption, 1960-80

ASEAN consumption in MTOE Internal consumption Bunkers Non-energy use Total World consumption in MTOE Total ASEAN total as % of world total Notes: (1) (2) Sources:

1960

1968

1972

1976

1980

10.5 2.6 0.3 13.4

22.7 6.0 0.8 29.5

32.0 6.3 1.0 39.3

44.2 5.6 1.5 51.3

59.0 5.7 2.8 67.5

2950 0.45

4592 0.64

5591 0.70

6243 0.82

6904 0.98

Internal consumption includes aviation fuels and refinery use. For world consumption, see Note (1) in Table 2.1. For ASEAN, author's estimates, see Appendices A and B for details; for world, British Petroleum (1977 and 1982).

The overall rate of growth of oil consumption in ASEAN was 10.6 per cent per year between 1960 and 1973 and 7.9 per cent between 1974 and 1980, compared to 9.9 per cent and 8.1 per cent respectively for total commercial energy consumption. Oil consumption increased at a rate more rapid than the growth in total commercial energy consumption in the earlier period but the rates of growth of both consumptions were about the same in the latter period. The drop in the growth rate of oil consumption, which was greater than for commercial energy consumption, was brought about by the drive to save oil following the 1973 increase in international oil prices, and was achieved primarily through more efficient use of oil but also through minor substitution of other fuels for oil. As shown in Figure 2.2 the structure of petroleum product demand in ASEAN was characterized by a high consumption share of the heavier distillates (that is, fuel oil and diesel fuel) and a gradual shift towards greater dependence on these products. In Figures 2.1 and 2.2 petroleum products have been arranged in such a way that the heavier the product the further down its position in the figures, such

Figure 2.1 ASEAN: Commercial Energy Consumption by Fuel Type, 1960-80 '-U

0

65

Figure 2.2 ASEAN: Fuel Shares in Commercial Energy Consumption, 1960-80

'E 100

,-------- ~-~- t ------- ---+----------

Q)

f-