Using size distribution analysis to forecast natural gas resources in Asia Pacific

Increasing energy consumption in Asia Pacific will largely be met by fossil fuels. Natural gas production in the region presently ranks behind that of oil and coal. However, the abundance of gas could lead to a significant gas market share increase in the energy mix. The purpose of this paper is to estimate the total endowment of conventional gas in Asia Pacific. This is carried out with a Variable Shape Distribution (VSD) model that forecasts volumes in provinces that have not been previously evaluated. The endowment is then distributed across countries to show where volumes are most likely to be found. A breakdown between offshore versus onshore resources is also estimated. The results of the analysis show there is a significant gas endowment. The estimated distribution across countries and onshore/offshore areas provides insight into the relative economics of gas production, as well as a basis for potential investment decisions. With appropriate energy policies, it may be possible to tap the vast gas potential in Asia Pacific. Considering gas may be the most abundant, inexpensive, and clean fossil fuel, the outcome would be increased energy security and a low carbon economy.