Oil-fired water heaters use an oil burner and a combustion
chamber (similar to an oil-fired furnace), which is located below the tank, as the
heat source to heat the water. When the thermostat (at the bottom
of the tank) senses that the water temperature has fallen below the preset limit, the oil burner will
ignite. A jet-like flame is created in the combustion chamber to heat the
bottom of the tank. In addition, the hot exhaust gases from
the combustion chamber are vented either through a hollow core at the center of the tank
(like a gas-fired system) or around the tank to help heat the water. The exhaust is
then passed
into the vent connector and directed to a
chimney flue.

Once the water temperature reaches the set limit of 120° F to 140° F, the
oil burner is turned off.
Note: Fuel-fired systems heat the water by heating the tank. As a
result, the tank experiences more wear and tear
than with an internal electric heat source. In addition, proper venting of the exhaust
is always important to prevent carbon monoxide poisoning. Be sure that
the
vent/exhaust system is properly installed. See gas heating
systems.
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