After discussing the classic determination of the heat of atomization of graphite by Chupka and Inghram, the values of bond dissociation energies, and the utility of average bond energies, the lecture focuses on understanding equilibrium and rate processes through statistical mechanics. The Boltzmann factor favors minimal energy in order to provide the largest number of different arrangements of "bits" of energy. The slippery concept of disorder is illustrated using Couette flow. Entropy favors "disordered arrangements" because there are more of them than there are of recognizable ordered arrangements.