Experimentation and a survey of the literature clearly show that contact stability in a force reflecting teleoperation system requires high levels of damping on the master robot. However, excessive damping increases the energy required by an operator for commanding motion. The objective of this paper is to describe a new force reflecting teleoperation methodology that reduces operator energy requirements without sacrificing stability. We begin by describing a new approach to modeling and identifying the remote environment of the teleoperation system. We combine a conventional multi-input, multi-output recursive least squares (MIMO-RLS) system identification, identifying in real-time the remote environment impedance, with a discretized representation of the remote environment. This methodology generates a time-varying, position-dependent representation of the remote environment dynamics. Next, we adapt the target impedance of the master robot with respect to the dynamic model of the remote environment. The environment estimation and impedance adaptation are executed simultaneously and in real time. We demonstrate, through experimentation, that this approach significantly reduces the energy required by an operator to execute remote tasks while simultaneously providing sufficient damping to ensure contact stability.