I think the key to alternative fuels is getting the automakers on board. If they stop selling 10 mpg Hummers and gas guzzling SUVs, well, it's obvious that people won't be buying them. They don't sell them in Europe b/c gas is so expensive over there, so they wouldn't sell. They got burned here BADLY over the last few quarters b/c gas prices shot up. Seems like it would be a smart move to shift to more fuel efficient vehicles anyway since they'll sell if gas is high or low. You've got people buying Priuses on the used market b/c they don't want to wait 4-6 months on a waiting list right now.
As for drilling, that's not gonna affect the price of oil on the supply side for a decade or more. The Dept of Energy said possibly THIRTY years in one report. Besides, there's already a ton of land set aside for drilling. The oil companies have decided it's not worth it there and have thrown their weight and lobbying behind getting other areas open. Why not drill where you can rather than where you can't?