X-ray observations of active galactic nuclei (AGNs) reveal the physics at work in the region closest to the black hole event horizon. I will discuss some of the most sensitive X-ray observations of AGNs and describe the processes responsible for the complex spectral appearance and the extreme variability in the light curves. I will discuss what this tells us about the black hole environment and even about the black hole itself. I will discuss the future of black hole studies, in particular focusing on the tremendous advances that the Astro- H X-ray observatory, and the Canadian contribution, will provide for us in this field.