I plan on spending $0 on oil this winter. Last year I used 400 gallons over the winter. At $4 per gallon that would cost me $1600 this winter. I'm expecting $5 per gallon which would make it $2,000 for the winter.
Well I just bought and installed a pellet stove. Also have 3 tons of pellets stored in my basement. The stove was $1500. The pellets were $750 for three tons. Three tons will easily get me through the winter for heating purposes. So I'm a little upside down right now (with $5 per gallon oil) but as oil prices rise I'll make out. And on top of that, there's always the years after.
Basically, the pellet stove is cleaner, cheaper, and pays for itself in 1 - 2 years.
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