When comparing the cost to heat a home with gas or oil, gas is usually the cheaper option. In 2013, the U.S. Energy Information Administration estimated that the average cost to heat a home with gas is $690, while to heat a home with oil is $2,558.
In addition to the cost of oil and gas, there are other reasons why gas may be a better option. For instance, natural gas is sourced from the United States and Canada, so the supply is stable. Oil availability and prices are quite volatile and can change dramatically from one season to the next. However, gas produces less heat than oil, and gas furnaces are more expensive.