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Yes, it’s possible to convert an oil furnace to gas. However, you may have to replace the furnace completely instead of simply converting it. If the original oil furnace has had any type of damage or is older (typically considered over 15 years old), then you will likely need a full replacement versus a conversion.

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.

To ensure a steady propane supply, schedule regular deliveries with your provider, monitor usage, and consider keeping a backup supply for emergencies.

Most qualified local plumbers in your area should be able to help with this job. However, it's always best to check with your utility company before starting any gas-related project. Speak with them about your needs and request recommendations for licensed plumbers who can pull permits and properly install the line.