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In physics, matter is considered to possess two kinds of energies ââ kinetic or potential energy. Kinetic energy is defined as the energy an object displays or possesses because of some kind of motion or action. Potential energy, on the other hand, is the energy an object possesses or displays by virtue of its state of rest. While potential energy is non-related to the environment of the object, kinetic energy is completely relative to the other moving or stationary objects in the environment.
Types of Energy. There are two types of energy: Potential (or stored energy) Kinetic (or energy in motion) Kinetic Energy is energy in motion. Moving water and wind are examples of kinetic energy. Electricity is kinetic energy because, even though you can't see it happen, electricity involves electrons moving in a conductor. Potential Energy is stored (or latent). Energy can be stored in many ways. A gallon of gasoline or a barrel of oil contains stored energy that can be released when we burn it.