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By combining the simulations of more than a dozen different global land surface models, an unprecedented analysis of terrestrial water and energy budgets is realized.

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This study quantifies mean annual and monthly fluxes of Earth's water cycle over continents and ocean basins during the first decade of the millennium. To the extent possible, the flux estimates are based on satellite measurements first and data-integrating models second. A careful accounting of uncertainty in the estimates is included. It is applied within a routine that enforces multiple water and energy budget constraints simultaneously in a variational framework in order to produce objectively determined optimized flux estimates. In the majority of cases, the observed annual surface and atmospheric water budgets over the continents and oceans close with much less than 10% residual. Observed residuals and optimized uncertainty estimates are considerably larger for monthly surface and atmospheric water budget closure, often nearing or exceeding 20% in North America, Eurasia, Australia and neighboring islands, and the Arctic and South Atlantic Oceans. The residuals in South America and Africa tend to be smaller, possibly because cold land processes are negligible. Fluxes were poorly observed over the Arctic Ocean, certain seas, Antarctica, and the Australasian and Indonesian islands, leading to reliance on atmospheric analysis estimates. Many of the satellite systems that contributed data have been or will soon be lost or replaced. Models that integrate ground-based and remote observations will be critical for ameliorating gaps and discontinuities in the data records caused by these transitions. Continued development of such models is essential for maximizing the value of the observations. Next-generation observing systems are the best hope for significantly improving global water budget accounting.

New objectively balanced observation-based reconstructions of global and continental energy budgets and their seasonal variability are presented that span the golden decade of Earth-observing satellites at the start of the twentyfirst century. In the absence of balance constraints, various combinations of modern flux datasets reveal that current estimates of net radiation into Earth's surface exceed corresponding turbulent heat fluxes by 13-24 W m 22. The largest imbalances occur over oceanic regions where the component algorithms operate independent of closure constraints. Recent uncertainty assessments suggest that these imbalances fall within anticipated error bounds for each dataset, but the systematic nature of required adjustments across different regions confirm the existence of biases in the component fluxes. To reintroduce energy and water cycle closure information lost in the development of independent flux datasets, a variational method is introduced that explicitly accounts for the relative accuracies in all component fluxes. Applying the technique to a 10-yr record of satellite observations yields new energy budget estimates that simultaneously satisfy all energy and water cycle balance constraints. , consistent with recent observations of changes in ocean heat content. Annual mean energy budgets and their seasonal cycles for each of seven continents and nine ocean basins are also presented.