Is natural gas available?

Where exactly are you ? In Canada or the US. The question about natural gas is a good one. To go all electric can be very expensive . I agree the homes envelope is probablty the main issue along with dated delivery systems if the tank is 30 yrs old when was the last time the heating and cooling had an upgrade? You taliking big $$$ no matter but I would start with better insulation for sure .

I am in the US. We have had many people look at the layout over the years and even thought about adding
another zone at some point but were told it is not possible in our townhouse layout. Natural gas is not available. We did foam insulation in the attic a few years ago. Our AC unit is about 5 years old and oil burner is about 12 years old.

Replacing one or more existing HVAC systems is an expensive proposition. I suggest you engage a local HERS rater to evaluate the existing conditions, and help you weigh alternatives with respect to initial investment and operating cost.

I am Canadian in Ontario. We have solved a lot of this issue with Heat Pumps or sometimes called mini splits. They are placed outside a home and even on a second floor and heat/cool individual areas. They are electric so it depends on your electricity prices but it may solve your upstairs heating and cooling issues without touching your main floor heating system.

Thank you. We thought about keeping the oil and just putting in a couple of mini splits but it still does not solve the issue of the old oil tank probably needing replaced at some point. We will keep that option on the list though. Thank you.

"but it still does not solve the issue of the old oil tank probably needing replaced at some point"

Yes, but if you stop using it you still need to get the old one out of the crawl space.

Yes. We discussed that and from what we have been told at least it will be a lot easier to get it out than put a new one back in but it who knows. lol

Has the tank been recently inspected for signs of rust?

It's not always possible or practical to remove an obsolete storage tank. Some municipalities will permit oil storage tanks to be de-commissioned in place. The protocol in our area is to drain the tank, and fill it with a material that precludes future use as a storage tank, e.g., sand or concrete. Once those tasks are completed, the municipality inspects the tank and issues a certification. Check with your local code official.

Sharing an update. Just had someone out to recommend we remove the oil burner and tank and replace with heat pump. Said it should run quieter and better. Still considering all options. They did say they could add a mini split in the one area that seems to get the least heat/cod from the ductwork as supplemental.

Keep the oil system until it fails and then replace with a heat pump. At that time, have the ductwork eveluated to fix the issue with upstairs. Adding a minisplit for that one room will probably double the cost.

Given the AC is 5 years old and the oil burner is 12 years old it makes sense to keep the equipment.

Investing in a mini split would be a good option. It would create a zone for the second floor. This would reduce oil consumption and not running the main AC for hours in an attempt to cool the second floor.

You could also install a heat pump in the attic and install registers and returns in the second floor rooms. It is more money but you would have a comfortable second floor. Either otionhas the potential to lower lower heating and cooling costs by setting back the temperature on each floor during day and night hours.

Just an update. Obviously time goes by way too fast. Lol. I checked my receipts and the AC unit was replaced in 2015 so it is now 11 years old. I am trying to locate the burner information but I believe it was replaced in 2010 so thinking it is about 15-16 years old.