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Once the oil runs out, there IS already something out there waiting to replace it, just don't know what...Human Beings are very clever, so it wouldn't be at all surprising if the oil substitute has already been manufactured and hushed up.
I reckon somewhere, someone has already invented a car which can run on water but the multi-billion dollar petrol, gas and diesel companies probably brought this person/s out with $. 
FYI, cars that run on oil also have batteries. I think you might be thinking of electric cars, which could be made better once the oil runs out.
People will probably reort to steam/coal powered trains and bicycles again. It's not like we'd suffer completely without oil, it'd just be different and take some getting used to.
Answer this Question: "What is everyone going to do"
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What is everyone going to do
When the oil is gone.
...I categorized this in community because it's a question we must all ask ourselves.