I agree that Oil use will not disappear, but it will likely be reserved for those industries like rail and shipping that need the power of internal combustion engines. These highly dependant forms of moving goods are also comparatively efficient. Nothing is going to change over night, but as we move away from oil in many sectors the cheapest and cleanest means of oil production will be favoured by the increasingly green aware world. Unfortunately oil from bitumen is neither cheap nor clean to produce, therefore Alberta must move it's economy now before the world no longer wants it's oil. Unfortunately Canada's oil economy will be taken away by market forces long before oil itself disappears.
Even rail doesn't really. Passenger rail networks in Europe and east Asia are almost all electrified these days - and high speed rail makes it nearly as fast as jet travel.
I guess on this continent we decided ("we" no - those with power decided) to never bother keeping up, or to even dismantle what we already had. Up to WW2, Canada was still building rail networks (especially including for passengers); after WW2 Canada began to dismantle them in favour of freeways and cars/trucks, and then air travel. I guess you could say they could more easily transfer the costs of transportation to individual consumers, by saying "fuck efficiency". Rail is the most energy efficient form of transport for passengers or cargo across land, but when we had cheap oil and thought we could burn massive amounts of carbon fuel without any consequences, "fuck efficiency" was the dominant way of thinking. We took that path because we had the luxury of doing so - in Europe energy was always too expensive to throw it away so easily, so they kept efficiency in mind.
Rail can be fixed and improved, and electrified, if we have the will to do it. Electrified high-speed rail seems to be the standard in any part of the developed world except N. America. We have the technology, but we don't use it because of all the entrenched interests and their political foot-dragging.
Ships are going to remain important, but they do not have to be powered only by inefficient and dirty bunker fuel. (Look it up. They run on the shit that is refinery byproduct, too dirty to use for anything on land. Out of sight, out of mind.) Fuel cells, powered by hydrogen could be a game changer for shipping, if it was adopted. (There are already such ships on the water, but they are military subs.) Energy is the bottom line for that too, but understand that there have always been other ways to power maritime engines - the choice to use bunker fuel was made only because it was (surprise surprise) the cheapest. Our 1st world lifestyle is dependent on 3rd world shipping practices.
Airplanes are the real sticking point. I do not have much faith in the idea of electrically powered airliners. Weight is the enemy for any aircraft, and high speed always has a high costs in energy. Still, there's ways they could innovate here.
Most of a planes energy demand is climbing to altitude - so perhaps burn hydrogen in a jet engine to reach altitude and then switch over to electrical to maintain speed?
If high-speed rail was available for most overland travel, then it would only be the over-ocean / intercontinental travel that would need jet airplanes. That change alone would reduce the carbon impact of the airline industry. Sometimes I think the problem is that they keep wanting to expand the use of air travel, even where it doesn't make sense. People flying by jet to Kelowna from Vancouver; people jetting off to Vegas with [heavily subsidized] tickets so cheap, the taxi ride to the airport costs more. The whole industry is completely distorted; the costs we see are not the actual cost, not by a longshot. Air travel is the least energy efficient, always has been - it is chosen because of speed, not efficiency, and that really only works for small numbers of people going long distances.
Yet, instead of keeping the actual cost (money or carbon emissions) of air travel in mind, we still see industry trying to push the idea of giving people flying cars. The problem was never really the tech; the problem was always that it would be so grotesquely inefficient that it should never be adopted. One flying car zipping around is cool; millions of them would be a nightmare. To work at all, it would require a whole new network of automated flying vehicles - no way you could let people take over the controls and make the same kind of mistakes as they do in ground vehicles. So at most, you're talking about flying limousines for the ultra-elite, and airborne police drones, not everyone commuting in the air like the Jetsons. So in the end, what's the point? To spend enormous amounts of energy just to look cool?
So yeah, I think we will have some use for carbon fuel still going on, but we do not need to use anywhere near as much of it as we currently do, and we should stop using the "we'll always need some of it" as an excuse to stay trapped in this cycle of world-breaking mistakes.
Believe me, if we stopped subsidizing energy inefficiency, and stopped shoving the true costs of transportation under the rug as "externalities", you'd see a rapid shift towards energy efficiency and a reduction in carbon emissions which would follow. It just takes real leadership from those with decision-making power and collective self-discipline among citizens who have to live with their decisions. Unfortunately, our "leaders" do not actually lead, and we just seem to accept their blowhard way of swindling us out of preserving our own survival.