Energy can exist in various forms including potential and kinetic energy. It is defined as the ability to do work or produce heat and is subject to the law of conservation of energy, meaning it cannot be created or destroyed, only converted between forms. A chemical reaction can be exothermic, releasing energy as heat, or endothermic, absorbing heat from the surroundings. The internal energy of a system is the sum of its kinetic and potential energies and can change via the transfer of heat or work in accordance with the first law of thermodynamics.