by Deborah Percy

Created on: October 30, 2009   Last Updated: November 03, 2009

To understand the differences between a propane and an oil furnace it can help to clarify the similarities first.

These furnaces both produce heat by burning fossil fuels, therefore, they are dependant on non-renewable resources. They are used in areas of the country which do not receive piped natural gas. They require delivery to the premises by a tanker and an on site storage facility which can be above or below ground.

Propane is a colorless, odorless gas produced by natural gas processing and the refining of crude oil. It is only liquid when in pressurized storage containers. Heating oil is a thick, smelly, petroleum based liquid produced from crude oil and most recently supplemented by plant based biofuels.

The National Propane Gas Association (NPGA) proclaim that propane (also known as liquid petroleum gas (LPG)) is a safe, environmentally friendly and economic fuel. In the event of a leak an odor has been added so the gas can be detected, it will not ignite when mixed with the air, except at very high temperatures (940 F) and the gas will dissipate. The gas should not be stored in a basement, however, because it is heavier than air and will remain in an invisible pool. It is not toxic, will not pollute the ground or water supply and the placement of propane storage tanks is not regulated by the Environmental Protection Agency (EPA).

The heating oil industry is also proactively promoting its product. In the event of oil leaks it does not generate hazardous fumes and it penetrates the ground slowly so spills can be quickly contained with minimal environment damage. It is not easily flammable but requires warming to 140 degrees F. Problems in the home can easily be detected by the smell of the oil. The quality of heating oil and furnaces have improved substantially over recent decades and emissions are minimal, like gas.

Which Fuel is Cheaper?

Generally propane is more expensive but prices do fluctuate and will vary in different locations. When the price of propane is about a third less than the price of oil then they are actually at equivalent prices for their potential heat producing value because propane has a heat value of 91,000 BTUs per gallon of liquid, oil produces 140,000 BTUs per gallon.

There is another dimension to complicate the price comparison, heat produced per $ of fuel will depend on the efficiency of the furnace, oil furnaces reach 85% whereas gas can be 95%. So your gallon of propane in a maximum efficiency furnace will actually generate

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