In a method for dynamically optimizing resource utilization in a system over time according to one or more objectives, data including information indicative of current environmental conditions, upcoming environmental conditions, a current state of a system configuration, and current system operating conditions is dynamically updated. Automatic analysis of the data using a probabilistic model based on conditional relationships is performed periodically. For each periodically generated set of possible system control actions, a probabilistic model is used to automatically analyze each possible system control action and an optimal system control action is selected based on a set of current utility functions. For each periodically generated set of possible system control actions, control of the system according to the optimal system control action selected from the possible system control actions. Resource optimization couples condition-based and environmental monitoring with automated reasoning and decision making technologies, to develop real time optimal control and decision strategies.