Oil Heating cons. Heating oil tanks – especially older steel-lined ones – are susceptible to leaks, which can be extremely costly to clean up – an expense that is often not covered by home owner’s insurance; Most heating oil comes from offshore sources, which means its price is subject to international market forces and is therefore more volatile than propane With this in mind, consider the pros and cons of an oil furnace, based on your budget, heating needs, safety and efficiency. 1. Budget. Installation costs are about the same as any other standard type of furnace. However, you will have to buy oil regularly to keep it running. Con: It Produces Fewer BTUs Per Gallon Than Oil When you measure how hot propane burns alongside other fuels, it’s a little disappointing. Propane doesn’t produce as much heat as oil.