If the price of oil and gas increases and price expectations increase, the SRAS curve will shift to the left. This means that short-run production will decrease.
The reason for this is that an increase in the price of oil and gas will increase the cost of production for firms, which will cause them to produce less output. Additionally, if price expectations increase, firms may expect that prices for their products will rise in the future, so they will be less likely to invest in new production capacity in the short run. As a result, the SRAS curve shifts to the left, indicating a decrease in short-run production.