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However, heating a home with a geothermal heat pump or a cold climate heat pump would be less expensive than using oil.At $4.67 a gallon for oil, it would cost the same to produce the same amount of heat using oil or electric baseboard heat.or example, a home that uses 800 gallons of oil for heating would use about 25,300 kilowatt-hours to produce the same amount of heat. Visit www.cmpco.com for a link to a more detailed spreadsheet from the Department of Energy to compare heating costs.
Oil prices have risen so high that oil heat, once competitive with other major home-heating fuels, has become the most expensive to use. Prices are tied to world events, so they can change quickly. But the trend of the past decade is clear: Heating oil prices have more than doubled from $10.31 per million British thermal units to more than $25 per million Btus. Nationally, only about 6 percent of homeowners use oil as their primary home heating source. Most of them are located in the Northeast.