Oil or LP gas, Oil has about 140,000 BTU of heat per gal.
LP depending on the value of it in your area has about 96,000 to 98,000 BTU per gal. In your case i would go LP 95% furnace in the basement, and then get a eff. hot water heater. I think the 95% hot air would have less problems than the oil. The 95 % furnace can get you the tax rebate. and you can get 10 yrs. on parts and labor for just a small cost. Just my opinion.
Paulbm

Cost of heating fuels?

What is your cost of oil, $ per gallon?

Of propane, $ per gallon?

Electricity, cents per kw-hr?

I canÂt imagine why air-source heat pumps wouldnÂt work well in your area. I would think that forced air with an air-source heat pump and a propane furnace for back-up might be your best bet.

SR

garyg;

We just paid $2.65/gal for a delivery of oil.

These are the Mass gov prices for home heating oil for this week, going back to 1995, so our oilman, as always, is mid-pack.

For November 24:
2009 average price: 2.73 (high: 3.30, low: 2.31)
2008: 2.64 / 2007: 3.26 / 2006: 2.34 / 2005: 2.34 / 2004: 1.99 / 2003: 1.36 / 2002: 1.25 / 2001: 1.11 / 2000: 1.54 / 1999: 1.09 / 1998: 0.79 / 1997: 0.95 / 1996: 1.15 / 1995: 0.95

These are this week's propane prices (often they run higher than oil, and I understand that price seems to be commensurate with use; the more used, the lower the price - I hope we will use little):

For November 24:
2009 average price: 2.57 (high: 4.11, low: 1.93)
2008: 2.74 / 2007 2.74 / 2006: 2.24 / 2005: 2.29 / 2004: 1.85 / 2003: 1.49 / 2002: 1.37 / 2001: 1.32 / 2000: 1.49 / 1999: 1.22 / 1998: 1.17 / 1997: 1.25 / 1996: 1.46 / 1995: 1.17

Can only find one reference to btu's and that was a general comment = 92,000 btu for propane for Northeast

We pay 14.6 cents/kWh for electric.

Thanks, Deb

djdoggone

do a close analysis of various fuel options first and their comparative cost.

see link below for fuel calculator which is a useful tool. you do need to know your efficiency for cost comparison.

IMO

Here is a link that might be useful: Fuel Comparison Calculator

Deb:

Compare the cost of 1 million btu's of heat.

I'll use your average costs.

Oil at $2.73/gallon, 80% efficient furnace (your old oil furnace may be less efficient):
(1,000,000 / 139,000 btu per gallon) x 2.73 / .8
= $24.55

Propane at $2.57 per gallon, 80% efficient furnace:
(1,000,000 / 91,000 btu per gallon) x 2.57 / .8
= $35.30

Propane, 95% efficient furnace
= $29.72

Heat pump w/electricity at $.15 per kw-hr delivered, C.O.P. = 3.25 at 35F ambient:
(1,000,000 / 3414 btu per kw-hr) x .15 / 3.25
= $13.51

Straight electric resistance heat:
= $13.51 x 3.25 = $43.90

The heat pump produces the same 1 million btu's of heat at more than half the cost of the 95% efficient propane furnace, and almost half the cost of the 80% oil furnace.

Note that the cost of a heat pump defrost cycle is not included in the above calculation.

As ambient temps increase from the 35F example, the C.O.P. increases, and the heat pump is even cheaper to run.

The C.O.P. was taken from my 3-ton 14 SEER / 9 HSPF Goodman heat pump at 35F ambient.

The heat pump needs auxiliary heat for when the ambient temps fall below the balance point of the home. That aux heat can be a propane furnace, oil furnace, or resistance electric strips.

Using the heat pump as primary heating, with a gas/oil/propane furnace as auxiliary heat is called a dual-fuel system. These systems have a lot of advantages.

Take care.

garyg: Thanks for doing all the math!