Energy is often defined as the "capacity to do work," but the term "work" can be ambiguous. Examples illustrate that energy can be observed through its effects, such as a battery powering electronics or a ball having potential energy when held aloft. The discussion emphasizes that energy is an abstract concept, measured by the work it enables rather than being directly observable. The relationship between energy and force is explored, with force defined as any interaction between objects, and the equation F=ma clarifying the concept of inertial mass. The conversation touches on the deeper implications of mass and energy, referencing Einstein's equation E=mc², which indicates that matter and energy are interchangeable.