The modal strain energy method is used to study the energy dissipation pattern in vibrating cylindrical shells with a viscoelastic damping layer, for various circumferential and axial modes. The effect of tank size, boundary condition and height of contained fluid on the distribution pattern is also investigated. The regions of energy dissipation concentration are identified. The effect of redistribution of the (initially uniformly distributed) constrained viscoelastic material by concentrating it in the above regions is studied.