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energy is not relative
where a sitting man assumes all frames are relative
The answer is the man at the station will calculate too little energy, since his mass and his assumed relative velocity, inputted into 1/2MV2 will be way too low.
He will violated energy conservation.
But since all frames are relative he tries to explain the difference as being due to the extra energy having been transformed into something else that is still being conserved. It is out here, but not easy to see; He may call it shadow energy and say it is another dimension. He will never see this in the lab, since this is not real, but it is needed due to misuse of relative frames in the light of energy conservation.
No, he won't. You are simplifying the situation too much if you think each viewer will calculate a different number of gallons of fuel used. In each frame, the relative speed of the rails and of the air itself will have to be taken into account as well. Each observer will calculate the same drag and friction and thus get the right answer about the amount of fuel burned.