A dynamically preferred quasilocal definition of gravitational energy
is given in terms of the Hamiltonian of a 2+2 formulation of general r
elativity. The energy is well defined for any compact orientable spati
al two-surface, and depends on the fundamental forms only. The energy
is zero for any surface in flat spacetime, reduces to the Hawking mass
in the absence of shear and twist, and reduces to the standard gravit
ational energy in spherical symmetry. For asymptotically hat spacetime
s,the energy tends to the Bondi mass at null infinity and the ADM mass
at spatial infinity, taking the limit along a foliation parametrized
by the area radius. The energy is calculated for the Schwarzschild, Re
issner-Nordstrom, and Robertson-Walker solutions, and for plane waves
and colliding plane waves. Energy inequalities are discussed, and for
static black holes the irreducible mass is obtained on the horizon. Cr
iteria for an adequate definition of quasilocal energy are discussed.