https://blog.nasm.org/creatine-explained
Basically, your muscles use ATP for energy during intense-moderately intense exercise. That ATP gets rapidly depleted. Creatine allows your body to maintain higher levels of ATP during that intense exercise which thus increases performance. And we are talking muscle energy in this context, not the same as mental/caffeine type energy- think more how long your muscles can hold you up doing a wall sit.
There are numerous other studied and accepted beneficial uses (elderly muscle wasting, cognitive, etc) that i do not understand or care to because i only really care about the sports performance aspect, which, as said previously is pretty much undisputed in the medical community for its efficacy and safety. Supplementation is "necessary" for the same reason all supplements exist... they are a cheap, convenient way to ensure you are getting adequate levels of the targeted nutrient that is otherwise inconvenient/expensive to intake at the preferred levels. Why would you supplement fish oil/Omega3, or Vitamin D, or take a multivitamin, or use protein powder, or use electrolyte powders or caffeine gels, or...etc?
Take 5g of creatine daily for month and see if you notice a clear benefit to your intense work capacity... id wager quite a bit that you will. A very basic graphic explaining the mechanism of how creatine improves performance is below:
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