If you get a heat pump, then there is not an electric furnace per se, but electric auxiliary heat. You can still use the oil as auxiliary heat, if we're talking about currently having forced air and not radiators.

Don't go less than 15 SEER.

The heat pump will cool just as well as a normal AC unit. With the higher SEER, you will use much less electricity.

If you remove the oil furnace, don't forget to add in the extra costs of removing the tank and other items.

I will mention that propane could be considered. But I'll wager that the installation of a new tank plus ongoing costs would be prohibitive. Costs of propane usage are usually at or above electricity costs. But it is there when the power fails.

Thanks for the feedback (hope others will reply with more)! OK, I guess that sounds right not to state 'furnace' for electric. We really want to eliminate oil even if it is minimally cost-effective or costs a little more. There would be some peace-of-mind since the furnace is 15yrs old and the tank (and line) is underground and likely 60yrs old. Also skyrocketed price of oil will probably stay or go higher. With all my research thus far I ruled out 13 SEER or lower. One upcoming bid is 14.5 SEER. We will not do propane, so it is heat pump with current oil or new electric. And wouldn't any heating fail with an electrical outage since the fan needs electricity (unless one has a generator)? Also, any advice on recommended brands? I think one guy is going to offer York and Goodman and the other guy Carrier (but there are so many brands out there and I am finding a LOT of unsatisfied reviews).

IIRC Pennsylvania has some stringent requirements as to removing in-ground oil storage containers/tanks and piping.

You'll need to factor in these abatement costs as compared to retaining oil as a backup heating source.

salitdawg, thanks for the reply. I plan to leave the tank underground where it is.

jzby,

If you no longer will be using the underground tank, I believe you will find you MUST remediate it. I would not be surprised if the Permitting Process will bring this requirement to the fore.