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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.
Cost of natural gas = $1.10 for 100,000 BTU. Cost of electricity = $2.93 for 100,000 BTU. Cost of heating oil = $2.50 for 100,000 BTU. In Part 2, we settled on a representative figure for the heating load of a moderate-size house in the Portland metro area with so-so insulation.lectric resistance heating: $ 1,758. Oil with 80% AFUE burner: $ 1,875. Now we have a pretty good comparison of the cost of providing 60,000,000 BTU of heat with two types of electric equipment, a 90% AFUE gas furnace, and an 80% AFUE oil furnace.