Fundamental aspects of the heat balance of the atmosphere and of the atmospheric heat circulation are investigated. The distribution of heat amounts in different layers and in particular months is studied, and analytic expressions for the seasonal fluctuations of the heat distribution in the atmospheric layers are found. The annual heat turnover for different atmospheric layers and latitudinal zones is computed. New concepts, namely “heat potentials,” “pseudo-constant of circulation” and “coefficients of circulation” are introduced and explained. The approximate values of the circulation constant and of mean zonal coefficients are computed. The so-called “Schmidt paradox” is briefly discussed, and it is shown that the coefficients of circulation must be taken into account in every meteorological consideration. A revised concept of atmospheric circulation and a definition of the intensity of atmospheric circulation are deduced from the potential analysis of the heat field. An attempt is made to formulate general characteristics of the fluctuating heat field of the atmosphere.