Answer
Energy is spread out over a larger area, so the light is less intense, but not lost.
Work Step by Step
For example, when we are three times as far away, the light is one-ninth as bright, but there is 9 times the surface area that the light is illuminating.
The total amount of light (i.e., the light energy) falling on a spherical surface is the same, at any distance from the light source.