Energy independence would be grand, however, we all know that “government run” or “government mandated” energy research will involve more waste than we can bear to think.
The best thing we could possibly do, is just ban the import of foreign oil. The market will dictate the price of oil when that ban takes place, and that price structure will drive the alternatives. Give Industry a few years heads-up, and we will have energy independence, someone smart and greedy will devise a way to do it, no doubt about it.
Why do we keep using oil? Simple Economics, nothing cheaper is available.