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As for coking the oil, that is why I'm interested in a steam heating solution. The temperature will never exceed 100C so the oil will be 'safe.'
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For the set up you are talking about, this may as well be true. However just so you know steam can get hotter than 100C (superheated steam), just check a steam tablet to see how temperature is related to pressure. Also be aware that when the steam condenses that the condensate (liq water) will still be 100C, the heat lossed will be latent heat.