Trains (locomotives) are not hybrid, they are diesel electric. The difference is that they rely completely on the diesel to supply power to the motors, none of it comes from a battery pack. Excluding the new pure battery powered locomotives that CN, CP and BNSF have on order right now that have no diesel in them, of course. There are other pure electric trains as well, like the ones in Holland and other countries that use overhead wires.
As for the internal combustion engine being obsolete for decades, the current engines in cars that you can buy today are at their highest level of refinement, efficiency, reliability and cleanliness in the history of using engines. If allowed, there's no technical reason to believe that engineers could not continue to successfully improve on them.
As for petroleum providing funding for American enemies, that is definitely true for many but not all. China has to import more oil than they sell. Cuba imports oil. Somalia makes barely enough for their own use, North Korea has no oil industry to speak of.