KINGOFTHENORTH said:
how about this one ..."Its cheaper to heat your house with pellets instead of oil"
Well how much are you paying for the oil and how much for the pellets, etc., etc ....
So it depends.
For example ignoring efficiency gotchas, and not including any labor costs with pellets at $200/ton oil would have to be less than $1.67/gallon to pull even.
At $300/ton oil would have to be $2.50/gallon to pull even.
At the moment you might be able to get oil for $2.59/gallon more likely it will be a closer to $2.69/gallon, run your own back of the envelope calculations.
Cost per ton of pellets divided by 120 gallons (a somewhat accepted equivalent energy in terms of gallons of fuel oil) to arrive at the cost at which oil is break even with the pellets (yes I know this isn't all of the required considerations, if one wishes to pick nits find a fuel cost comparison calculator and play with it).