Is there an alternative fuel we can use right now!?

we depend so much on oil in our power generators...etc. esp. in our transpo, why cant engr.s or scientists create alternative machines that can be fueled by water or anything else that are abundant? oil are getting expensive probly. bec. sources are depleting, not to mention the crisis goin on in the mideast. why govts doesnt support such ideas? let them (oil producing nations) use their oil bec. they dont have water in the deserts.