Originally Posted by Mr. Solo
I thought that means that a greater percentage of ur energy is coming from fat, not necessarily that you are burning more fat?
Right...and with that, you also become more efficient at using fat as a source of energy. Do this over a period of time, and you will drop fat, as long as you are eating properly. Also, lifting weights helps (not necessarily lifting to "bulk up"), as more muscle mass burns fat quicker.
For example, when I was training for a marathon a couple years ago, I dropped 20 pounds in about 3 months via running and lifting on a regular basis, and keeping a watchful eye on my diet. In contrast, in the last 6 months I've only lost 10 pounds via cycling and watching my diet (although I'll admit I'm not as strict with it as I was when I was running - but fairly close). I have another 20 pounds to lose, but am not really motivated to lift right now.
But it does sound like the OP needs more lower to medium intensity work on the bike.