does this mean oil has failed?
The difference is that you need oil and probably 9/10 families have at least 1 thing that runs on oil (or gas made from it), be it a car, a motorcycle, a pump, lawn mower or a generator.
Perhaps this is part of the problem with oil (though in the very short term only a small part). Battery powered substitutes for many of those devices are becoming more readily available, practical, and cost effective all the time.