We will never run out of hydrocarbons. We already hit peak oil right on schedule around 2004 when oil prices shot up above $100 a barrel. Rather than go into decline, production has only gone up. The lesson learned is that even if petroleum becomes increasingly expensive there is no limit to hydrocarbons in general. There are endless supplies and until you can outperform them from a military perspective we will continue to use them.
We can manufacture synthetic jet fuel and diesel that is superior to todays using long proven technologies for reasonable costs. Using gasification technologies diverse carbon resources ranging from lignite and other low grades of coal, garbage, biomass, petcoke, peat and more can be converted into a wide variety of fuels, chemicals and power.
Among the advantages of gasification includes the ability to separate out all the pollutants and convert them into commodities for sale. Pure fuels, for which methane is the gold standard, impart tremendous benefits on society by not polluting the air, soil and water with toxins that are killing us every day. Every step the EPA takes to ratchet down on sulfur levels helps push the entire industry towards synfuels and natural gas, which is great.
As for carbon dioxide, obviously there is an important role for renewables, efficiency, nuclear, micro-grids, etc. But we will continue to rely on hydrocarbons and so it is imperative to deal with the CO2 directly. We need to capture every bit of CO2 we can, move it by pipelines, find marketable uses for as much as possible and sequester whats left. Beyond that we need to use the soil as a carbon sink, grow plants and restore soil on every square inch of God's green earth. Its a greenhouse effect right? Embrace it, grow plants, go green. We are not doomed, there are solutions.