Gas Prices

This article says gas prices are going to rise due to middle east unrest.  Economic theory suggests that as the price of a good rises producers make more of it.  I think gas is inelastic in the short run and there are few alternatives for gas.  As a result of this exogenous rise in gas (crude oil input), resources will be diverted from the production of food into energy.  Many will stave like in 2008.  Alternative energy sources like Ethanol will see an increase in demand.  Energy prices will continue the long recession.