Well, while some of that oil, especially for electricity production, can eventually be replaced by other means including nuclear, wind, solar, etc., the majority of it is consumed by the transportation sector, including autos and trucks, airlines, commercial air freight and the largest single user in the Federal government: the US Air Force. Nothing else has the energy density of petroleum. Sohbet Karbuz's recent piece called "US Air Force Energy Plans" provides an early/mid-course update on how the service is doing with its efforts to reduce its oil demand. In particular, he goes into detail describing the ill health of syn-fuels companies who are trying to create jet fuel out of other sources like coal, natural gas and biomass. Short take: at this point in time, there's not much reason for optimism that a solution is anywhere close. Better keep at it.
Photo courtesy of Rob Shenk @ Flickr