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The fuel to use is Dry Wood. You make it in dryers from Wood - you actually dry wood for the Resin (to make Stone Consolidant). One Wood -> two Dry Wood and one Resin. Dry Wood + Resin makes one Insulated Wood, but unless you build with it not much is needed.
So, in a sense Dry Wood is a surplus to needs by-product that makes an excellent fuel.
Coal can also be used, but since Dry Wood is made anyway why not use it?
Oil can be made in bulk, but only if you have a T4 alchemist.
My 2c - I think it's efficient.
But there are ways to get loads of oil from fish traps. Suggest some WAK4863 or Firespark81 YT videos - just seach for new ones about oil.