But pellets are $5+ per bag. Do you get more heat out of 1 gallon of oil or 1 bag of pellets. I put my money on the oil!
Fuel Prices
According to a fuel equivalency chart from the Massachusetts Division of Energy Resources, 1 ton of wood pellets provides as much heat as 120 gallons of heating oil. This means that if you pay $200 per ton of pellets, it would be the same as paying $1.67 per gallon for heating oil.
In markets where true oil prices are much higher, such as in winter 2008 when the price topped $4 per gallon, wood pellets can be an economical alternative. Both oil and pellet prices can fluctuate depending on supply, demand, location and other factors.
Considerations
Pellet stoves are generally considered a more environmentally friendly alternative to oil heat. Pellets are usually made of waste sawdust and wood chips, although stoves may also burn corn pellets and cherry pits. These materials are viewed as renewable resources, as opposed to oil.
The oil heating industry is also working to create more sustainable resources, blending heating oil with biodegradable materials such as soybean oil in some markets.
Read more: Oil Heat Vs. Pellet Stoves | eHow.com
Oil Heat Vs. Pellet Stoves | eHow.com