If people are willing to pay ten times more for the same quantity of oil if it's used for kerosene (among other things), then more oil will go to kerosene, which has few substitutes, than to other fuels which can more easily be replaced.

I don't see how business travellers, who already pay 600-1000 euros to fly within Europe, will need to pay much more even if oil prices increase a lot. So the price increase will not be enough to eliminate that kind of travel as it will fully pay for its way. Low cost is another story, of course.

In the long run, we're all dead. John Maynard Keynes