Oil would cease to be an energy source, but still is useful as a chemical feed stock. The lower demand and high production capability would result in cheaper plastics, pesticides, pharmaceuticals, pigments, fertilizers, industrial chemicals and yes, grease and other lubricants. A win for the rest of the world. Too friggin' bad for the terrorist supporting states.
The only real problem, IMHO, is the reduction in combustion products will result in much colder global temperatures.