Oscillations in eigenvalue density are associated with closed orbits of the corresponding classical (or geometrical optics) system. Although invisible in the heat-kernel expansion, these features determine the nonlocal parts of propagators, including the Casimir energy. I review some classic work, discuss the connection with vacuum energy, and show that when the coupling constant is varied with the energy, the periodic-orbit theory for generic quantum systems regains the clarity and simplicity that it always had for the wave equation in a cavity.While quantum gravity people were learning about the heat kernel, atomic physicists were progressing beyond it.The key property of the heat kernel expansion is its locality: the coefficients a n (x) are completely determined by the metric and potentials in a small neighborhood of x. This makes it easy to compute and universal in its applications to renormalization of ultraviolet divergences. Its formal inverse Laplace transform is an "averaged" spectral density [1][2][3] that is equally local and universal, insensitive to the detailed spacings of the eigenvalues (if the spectrum is discrete at all).The interesting part of renormalization is what is left behind when the counterterms are subtracted. For example, vacuum (Casimir) energy can be calculated from a two-point function (a kernel for the wave equation) by subtracting universal singular terms. The wave kernel and the vacuum energy are nonlocal ; they reflect boundary conditions, global topology, presence of periodic or closed classical orbits, and whether the dynamics is chaotic or integrable. This global geometrical information is encoded in the fine structure of the spectrum.More precisely, let T (t, x, y) be the integral kernel of e
−t √H , where H is some positive selfadjoint second-order differential operator. (This "cylinder kernel" is analytically more tractable than kernels of wave (e.g., e