The body processes and utilizes fats for energy through a process called lipolysis. In this process, stored fats (triglycerides) are broken down into fatty acids and glycerol. Upon entering the bloodstream, fatty acids can be used by cells for energy via oxidation, particularly during prolonged exercise or fasting states. Additionally, the liver converts some fatty acids into ketones, which serve as an alternative energy source, especially when carbohydrate intake is low. This efficient use of fats is crucial for maintaining energy balance.