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This lecture delves into the concept of energy conservation in fluid mechanics, focusing on the simplified situation of a control volume with one inlet and one outlet. The instructor explains the total specific energy, internal energy, kinetic energy, and potential energy, emphasizing the importance of writing physical laws for a control volume. By converting the Lagrangian law of energy conservation into an Eulerian law, the lecture explores the relationship between mechanical power, heat transfer, and work on the system. The discussion also touches upon the similarities between the energy conservation equation and the Bernoulli equation, leading to a deeper analysis in a subsequent section.