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Venting a gas water heater out of the roof is preferable in most cases. Heated exhaust gases naturally rise, so a vertical vent pipe is efficient. If you’re trying to vent through a pipe exiting a wall, the angle of the pipe may be more horizontal than vertical, making the venting system less effective. If you go through a wall, you may need to add a fan to ensure a successful expulsion of the gases outdoors.

Oil furnaces don’t emit poisonous or highly flammable gases, making them less dangerous in your home than gas furnaces because they have a much lower chance of combusting. An oil furnace does pose the risk of causing a fire if it tips over, but it is generally considered safer compared to a gas furnace.

You can and should vent the gas from your hot water heater to the outside of your home. Traditionally, these gases were vented back to other gas appliances, like stoves or furnaces, but many jurisdictions have outlawed this practice due to the risks it provides. 

Most water heaters today use atmospheric venting that exhausts the gas out of the home through a pipe.

Element, gas features, and complexity, including venting and connections, are typically higher due to safety and expertise factors.