Personally, I believe that if the government seriously cared about advancing us from fossil fuels (or at the least petroleum), they certainly have the power to do so. How? Through the use of tax credits and/ or tax breaks. Give fat tax breaks for car companies that develop natural-gas or electric cars. Offer tax breaks for people to buy and own them. Furthermore, the government could encourage (aka subsidize) the use of nuclear power. Environmentalist whining nonwithstanding, nuclear energy is the single best source of electrical energy we have. Yes, disposal of nuclear waste is a concern in the States, but that's due in large part to the fact that our nuclear capabilities are embarrassingly behind those of Canada and some members of the EU. France gets at least 50% of their power from nuclear, and they even have a reactor that can reprocess nuclear waste. Furthermore, I read in Popular Science about a type of "plasma incinerator"- it can take any fuel so long as it's not in elemental form, produces syngas (which actually fuels the electric generator) and a glassy, obsidian-like slag as a byproduct.
*Whew* In short, if people seriously wanted to move on from oil, we could. But we aren't. And in light of the way things are, I for one am pleased that such a large accumulation of oil is likely present.