Research opportunities in physics related to efficient energy utilization are identified. Stress is given to the conceptual framework of thermodynamics, especially as a tool for assessing the efficiency of the management of low quality heat. Elementary quantitative models of energy flows in the house and the car are developed. The report emphasizes the importance of new systems concepts and new materials for the management of heat and of new diagnostic instrumentation. Further technologies reviewed include the automobile tire and suspension, hot water heaters, HVAC systems, the fuel cell as a combined system for electricity and heat, electrochemical processes, and processes involving separative work.