We are always going to be screwed when the people we rely on for oil are the same ones that hate us.
There is no one magic bullet, but what we can do is lift restrictions on domestic oil production, build new refineries, increase the gov't standards on mpg, require all vehicles being produced to have flex fuel capability, develop flex fuel conversion kits for exisiting vehicles and offer tax rebates for them, lift the tarrifs on ethanol imports from countries such as Brazil, build new nuclear powerplants.
Once we move in this direction and money is to be made, we will see ethanol on sale at every corner gas station. When we can use either one, there will be a price war between gasoline and ethanol producers. We badly need for "big oil" to have some competition.
Just moving in this direction will make OPEC s**t their pants and they will suddenly become more cooperative, I bet.