Well Tom and others, you got me. My energy statement would hold if that little word efficiency were not part of the mix. It does take less energy to ride up a hill than walk if both methods were 100% efficient. Trouble is that nothing is 100% efficient. The bike is a more effiicient means of transportation than walking thus you need less energy due to a mechanical advantage.
This web site explains it better than I could ever. Thanks Tom and others for keeping me honest.