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If energy is stored in chemical bonds, and bond formation is always an exothermic process, doesn't that imply that bond formation both stores and releases energy? How is this possible? I'm clearly not understanding some basic tenet of chemistry. For example, H+ and OH- neutralize to form H2O.
Because oxygen binds tightly to the atoms of the compound being combusted. Not all oxidation reactions are exothermic. Only those oxidation reactions that are known as combustion are exothermic. In such cases the same holds that holds for all exothermic reactions: apparently the bonding energy of the molecule plus the bonding energy in the oxygen molecules together is less than the binding energy of the oxides that are formed.