If they would start drilling off the coast, in Alaska, in Brazil, and now in North Dakota we could be out of this mess and prevent oil from going that high. If they had simply started drilling 10 years ago when Alaska came up and it was defeated by 1 vote, then we wouldn't have the problem we have today. Yes, oil is finite, but we keep finding new deposits of it all the time. They found a bunch down in Antarctica (the Russians are eagerly going after it) and over in Greenland. Recently there was a discovery in Brazil and North Dakota. Just because oil runs out in some places does not mean there's no more to be captured and utilized.
Two bad assumptions there:
A) Most of these deposits are relatively small. Best Estimates (Not the largest estimates, but the most likely, according to studies) of the Anwar reserve are six months of oil usage - at our current rates of using oil, it will either be gone quickly, or be a small percentage of the market. Sure, there *could* be more, but investing heavily there is like betting your house on drawing on an inside straight. Sure - *maybe* you end up filthy rich, more likely you end up in the street.
The heavy deposits that *are* found (like it looks like the Brazilian Deposit is) are not easy to get to. When you get to deposits like that, or shale, or oil sands, it takes so much money to get them properly that those doing so can't *afford* for oil prices to drop, or they'll never recoup the initial investments. They can act as a stopgap to keep prices from rising, but it is actually stupid for those getting to them to drain the reserves at a rate sufficient to drop prices, because they've invested so much to get the oil in the first place.
We have the technology today to use vehicles that run exclusively on water. Unfortunately, this technology has been trampled on by the powers that run energy markets. There was a motorcycle, dune buggy, and a few other vehicles in Europe over the past couple years which ran on tap water. Unfortunately, they've either disappeared or their owners wound up slumped over in their own driveways. The USA is getting raped by the big oil companies who are making tons and tons of profit and not reinvesting it or lowering prices. Just because Europe has decided to quietly go along with that scheme does not mean the USA won't. We have the capability to make gas come down to about a dollar again if we'd simply relax environmental regulation and force the oil companies to do something productive with those profits (not via taxes--we need some sort of oversight or control over how they distribute their profits).
Honestly - that's a great fantasy, but it doesn't make sense really. You get energy out of chemical reactions by breaking chemicals from high, complicated energy states to smaller, simple ones, you store energy chemically by using energy to drive things from low energy, simple states to high energy, complicated, unstable ones - Our petrochemical industry only survives because so many eons of organisms used sunlight to help make bigger, complicated, unstable chemicals and died before they got a chance to use that energy the way they planned to. Oil is canned sunlight, more or less.
But water is one of the most stable chemicals in existence - that's why there's so much of it, it takes huge amounts of energy to break it down. It's a great chemical to aim for as an end product - it's so stable itself that anything that has it as an end product has probably released a fair amount of energy, but as a fuel? You'd have to find something that's an even lower energy configuration of Oxygen and Hydrogen to aim for, and frankly, there just ain't any many energy states to shoot for. Plant's use it, in conjunction with Sunlight, and we get free oxygen out of the deal as a side effect of they're chemically storing more energy than they can use safely (They don't move around a lot, and don't feel like wasting time storing the equivalent of raw jet fuel when they're not going to use it.)
But as a fuel, in and of itself? Third rule of thermodynamics, there ain't no such thing as a free lunch.