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Thanks Mike, this would be in New England area, question what about cost vs oil. I am under the impression that propane is not as costly as oil to burn ( for heat ) ... is this true ?

A gallon of propane may be cheaper than a gallon of oil, but the propane provides 91,000 BTUs versus the 139,000 BTUs for the oil. On top of this you have to factor in the respective efficiencies of the furnaces. On oil furnace may only be 85% efficient, but a propane could be up to 98%.

Oil prices are low right now, so it could be cheaper than propane. But the prices of but of these fuels fluctuate and not always in the same direction.

All three fuel oil furnaces I've had were noisy. The propane we used for hot water and cooking varied widely in cost. When our last furnace gave out we made the decision to go all electric, using a geothermal system. That was 8 years ago. If I did it now I might be looking at split system heat pumps. If your dead set on fossil fuel, I'd go with propane and try to find the best supplier.

Some home insurers are beginning to decline coverage for oil systems, or setting restrictions (mostly related to the tank). If you'd be getting a new system, that's less likely to be an issue, but expect your insurer to ask a lot of questions if you're going oil.

From what I've heard, buried tanks are an absolute no-no these days, and in-basement tanks have to have catch basins and fibreglass cladding. All because even a small leak can be a significant expense.

Seriously look at geothermal or air-to-air heat pumps as mentioned above. Higher up-front cost, but you're not hostage to fossil fuel prices.

For our new build, we went geothermal for heat/AC (and pre-heated water), but had propane put in anyway for the cooktop, a whole-house generator, fireplace and BBQ hookup.

The hypothetical question is comparing existing propane and fuel oil heated houses. For a new build there are better options available.

Mike offers very good analysis. Generally, it has been my experience that propane pricing follows oil pricing. I personally would stay away from oil . i think anyone looking at propane should consider electric pricing and if in a cold climate perhaps consider dual fuel system, ie electric heat pump paired with high eff propane furnace. Only a cost comparison between propane and electric fuels will tell you if that’s worthwhile.

IMO

for Big Al

if you provide your fuel costs, ie oil/gal, propane/gal, and electric cost/kWh, I will be glad to give you a comparison between the fuels as a guide only.

TD

fuel oil follows diesel pricing. Around here, the cheapest diesel I've seen is $US2.89 . I would assume fuel oil around the same price, given it isn't taxed.

I heat with oil and have a fairly efficient oil boiler ( lo mass, 3 pass design). In CT for i burn about 550 gallons of oil per year in a 1600 soft house built in 1960 with blown in cellulose insulation. (Includes the domestic hot water.). At 19 cents per kWh of electricity I would never consider electric resistive heat. Perhaps a heat pump. . Fuel oil is currently hovering around 2.90 a gallon. If I were building new I would look at propane. I have a distinct preference for hydronic baseboard heat over scorched air.

I investigated the costs of heating Burlington, VT, and electricity and propane tied for the most expensive (per therm), oil next, and wood the cheapest. Of course, convenience follows the same trend! With electricity, you have the option of using a heat pump (including geothermal) and, perhaps in the future, electricity may be "greener" than propane (or oil).