The wonder composites that make electric cars possible are all oil. Carbon fiber is hilariously not-green to produce. Make a tube out of oil and burn it over and over. Now make a car out of it with zero chance to recycle and talk about how green it is.
Two things to your post though. Yes, making things out of oil is probably better than burning it. But don’t mistake how much oil is used in the side-processes.
We will burn the oil one way or another. Until there is a better source of energy with better safety and density than hydrocarbons, we’ll use it all. If not in cars, in power plants, if not there in military, if not there in 3rd world, etc.