In the early days of the automobile ~ as it was being invented and developed ~ the gasoline engine was not the only option. In addition to sxeveral brands of electric cars, there was also at least one steam-powered automobile, the famous Stanley Steamer.

Ecology was not perceived as an important issue back then, of course, and gasoline won out largely on the basis of power and convenience. I wouldn't doubt that the fledgling oil companies might have colluded with the car manufacturers to some extent, but it should be kept in mind that "Big Oil" wasn't especially big or powerful back then. It was only after automobiles became much more commonplace that the petroleum industry really grew huge.