The answer to the why we have not found an alternative is simply that we value volumetric and mass energy density, and this graph on Wikipedia:
<a href="http://upload.wikimedia.org/wikipedia/commons/c/c6/Energy_density.svg" rel="nofollow">http://upload.wikimedia.org/wikipedia/commons/c/c6/Energy_de...</a><p>shows that gasoline has both of these, along with good resistance to premature ignition, and other favourable ignition characteristics. The solution will not be in finding something new, which is superior in every aspect to oil, but instead to be willing to sacrifice in some areas, (maybe volumetric energy density and total thermal efficiency,) in order to find an achievable solution. Using a plentiful energy source (nuclear?) to perform hydrolysis, and distributing the hydrogen as a fuel seems like the most likely endgame to me, but the material properties of hydrogen are not favourable to storage and small scale use.