How Cost-push inflaction can result in a recession?

http://en.wikipedia.org/wiki/Cost-push_inflation

Exaggerated Example:

Lets say the US had no oil at all. Then suddenly and rapidly (rapidly is the key like 3-6 months) the cost of oil went from $40/barrel to $4000/barrel. Because it happened so fast, the market could not come up with a better alternative. Businesses that rely on oil for operating or personal people rely on oil to get from point A to point B can't do so at a reasonable cost.

Typically Cost-push inflation will not happen because companies and governments are smart. If the cost goes too high, it will impact quantity and most importantly accelerates the development of alternative technologies that ultimately compete and reduce the cost for everyone.

I think the oil companies saw this with $4.00 gas. Suddenly everyone wanted a battery powered car and those technologies got a huge influx in cash. Given gas at $6 or $8/gallon, other options would eventually catch up and compete.