To understand what energy is, it is necessary to understand the concept of work.
Work is defined as the action of a force over a path.
$$ W=\vec{F}\cdot\vec{d}$$
What does this means? It describes how "exerting" or "draining" a particular action is. For example, imagine lifting a shopping bag of mass $10\ \mathrm{kg}$ vertically by $1\ \mathrm m$. This takes work, and exactly the following amount, given by the weight of the bag times the distance.
$$W= \vec{F}\cdot\vec{d} = Fd\cos{0}=mgd=10\ \mathrm{kg}\times9.8\ \mathrm{m\ s^{-2}}\times1\ \mathrm m=98\ \mathrm J$$
Energy is classically defined as the capacity of a physical system to do work, or in other words: as you perform work, you exchange energy for some physical effect by doing work. Or in other terms again, by exerting a force over a distance you convert energy into work.
In our example, you need to use some form of energy to lift the shopping bag. The quantity you need is exactly the amount of work we calculated.
What happens to this work? It's converted to energy again – to gravitational potential energy:
$$U_\text{final} = U_\text{initial} + W$$
or
$$\Delta U = U_\text{final} - U_\text{initial} = W = mgd$$
which is the classical definition of gravitational potential energy.
So in practice – we never see or measure energy directly. When energy changes form, it is called work, which we can measure. So work, in a way, is a "transport" concept for energy. Energy, on the other hand, is like a "reservoir" of work in potential.
Why is energy a useful quantity? After all, work seems to be a more "fundamental" quantity from an experimental point of view.
The answer to this lies in the conservation law of energy. Work in itself describes a change in energy, so it's not a conserved quantity in itself unless you embed it in the more general concept of energy, which is conserved.
In fact, we can derive large swaths of classical mechanics using conservation of energy as a prime principle, together with the principle of least action.
Caveats
In more advanced theories, conservation of energy is a much more complicated matter and does not apply as simply as in the classical sense. For example in SR, energy can be converted to apparent mass and vice versa.
There are also very interesting mathematical properties of potential energy and its relation to forces and especially fields of forces. These explanations, though are way more abstract and mathematical – I assume you want an intuitive, instinctual explanation of what energy is.
If you are looking for the former please see this question.