Ryland
I just had a look over on the Ebay and 1 ton or 12KBTU split heat-pumps are about $550.00 I don't know how large a unit your friend would need but trying to feed an oil furnace these days is no answer. The cost of furnace oil in all likely-hood will jump in price just as your friend needs it.
As he is needing a heat-source just for back-up one 1 ton unit may fit the bill. Maybe with one of the suppliers they would split payments for monthly installments.
Trying to thin oils with gasoline and run what-ever through a oil-furnace sounds like a problem waiting to happen.
The weather is good now for installing a heat-pump and collecting fire wood. Maybe your friend could sell some fire wood to help make the purchase.
Having had the same struggles as your friend with a depressed economy and the price of furnace oil headed for the sky.The bit of newer technology saved my butt.
Randen
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