Oil being finite is not the problem, as far humans and the next hundred years its infinite. Its only the cost to discover and extract that would discourage its use, also it could just be less efficient then new forms of electric power.
Nuclear power is already more efficient then oil but many other things are not (vs Saudi oil costs), however oil is not as clean to use at point of burning. It makes alot more sense to have all electric use in major cities of the world, if anything we are behind in that as a feasible scenario.
The electric also requires some oil usage for production but the emissions would be outside cities. There is also an increasing case for use of solar panels, the main reason is always efficiency and solar is now better performance to price.
Long term oil will be replaced but I do not believe it will run out. Many areas of the world are still not used.
I essentially agree with what you say
As the saying goes, the Stone Age didn't end for the lack of stones, and it is pretty much the same with oil. That said, I can't quite agree with your optimism (if I can call it that) in respect to solar panels. They may become cheap and efficient (on their own) but they are not very useful where most electricity is consumed. I mean the best part of Europe, the US and Canada where there is not enough sunshine to make them a viable solution. So with solar panels we are still inevitably stuck with the issue of efficient power transmission over long distances. You simply can't raise voltage indefinitely to diminish the losses due to resistance of the wires, and until there are major breakthroughs in superconductors or similar technologies, solar energy will continue to remain a marginal source of power for most of the industrialized world
