Our current civilization cannot survive without liquid fuels. Even if we had an alternate source available today, it would take 20-30 years to make a switch over. We don't have an alternate source, and there is no reasonable alternative in sight.
We need biomass-based fuels, a much more extensive mass transportation system, a massive increase in fuel economy for petroleum-based vehicles, and a shift in overall world consumption methods. This is a massive undertaking, and if we wait until oil hits $200/barrel, it will be too late to make these changes without massive disruptions and great hardship.
For an example, look at Brazil. They emarked on a plan to become energy self-sufficent in the 1970s. They have essentially succeeded, thanks to ethanol production. However, it took 30 years.
Sugar cane based ethanol production (like Brazil has done) will not work for the US. Corn-based production is also a bad idea, since it takes to energy equivalent of .8 barrels of oil to make a barrel of ethanol by that method. We need cellulosic ethanol, and we need it on a massive scale. If we had spent 1% of our defense budget on this over the last 30 years, we would be in much, much better shape, and we wouldn't be held hostage by the middle east. In my opinion, a much better use of our tax dollars to provide security.