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Oil Furnace

An oil furnace uses oil as a fuel source to produce heat, which is then re-distributed throughout your home to increase the temperature.

What is an oil furnace?

A furnace is a part of the heating system in which the combustion of fossil fuel and transfer of heat occurs. Furnaces can be fueled by natural gas or oil. An oil furnace is a type of heating system that burns fuel oil to heat your home. Oil furnaces are more common in colder weather climates, including the northeastern United States.

How does an oil furnace work?

An oil furnace works by burning fuel oil in a combustion chamber. The heat created from the combustion is transferred to air passing through the furnace’s heat exchanger and then blown into your home. The fuel oil is stored in an outdoor tank and then pumped into the furnace. The main components to a furnace include burners and heat exchanger, blower and controls. 

Watch a video to learn how a furnace, heat pump, and AC work together.

What’s the difference between an oil furnace and a gas furnace?

Oil furnaces are different from gas furnaces in several ways. The biggest difference is that oil furnaces burn fuel oil, while gas furnaces typically use natural gas or propane. Additionally, oil furnaces tend to be less efficient and require more maintenance than their gas counterparts. Gas furnaces are typically more energy efficient with AFUE ratings between 80 and 97 percent, while oil furnaces range between 80 and 90 percent. You’ll also find differences between the cost of new gas and oil furnaces and the cost of fuel.

Pros and cons of oil furnaces


  • Oil furnaces are usually less expensive to install.
  • Oil furnaces generates more heat per BTU than a gas furnace
  • Oil furnaces can be installed in areas where gas pipelines aren’t available


  • Oil furnaces typically require more maintenance than other types of furnaces 
  • Oil furnaces can be less efficient than a gas furnace
  • Fuel oil must be purchased and stored, which adds an extra cost for homeowners 

In conclusion, an oil furnace is a great option for those looking for a reliable and efficient way to heat their home at a lower price point than other types of furnaces. However, it is important to remember that oil furnaces require extra maintenance and care in order to ensure proper operation and safety. If you think an oil furnace might be the right choice for your home, contact a trusted HVAC professional to discuss the details of installation, maintenance, and other factors that can help you make the best decision for your home. 

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