Industry will also see energy efficiency as a higher priority. This is not to say that people recklessly burn energy now, just that it is not economically rational for them to invest money on saving energy or too spend time on this seemingly low priority. This will change. This of course in itself will moderate the price rise. Some heavy users of energy who will be unable to pass on their increased costs and so go out of business.
Companies go out of business all the time in a free market, and new businesses start up.
In a free market this is merely a reallocation of labour, capital and resources from a less productive to a more productive area. There will be dislocation, but that happens in any half way dynamic economy, indeed it is the price we pay for living with the opportunity, freedom and high living standards that only capitalism can give us. The idea that we have to pay the enormous price we are in the Middle East, purely to avoid the economic dislocation caused heavier oil prices smacks of the interventionist folly that kept open uneconomic heavy industry. In the long term, we pay a higher price. On the individual level people may find that it is better to walk less than a mile, rather than drive, and they may even sometimes be indoor in winter, but not wearing summer clothes.