<p>"HEATING SYSTEM OR FURNACE" Conventionally, furnaces used to provide heat utilize a gaseous liquid or solid fuel source all of which requires venting of one form or another. Electrical power is also used to energize resistive type heaters but the operation requires special wiring and is relatively expensive to operate. This system utilizes a closed circuit heat exchange system including a main reservoir containing a circulating fluid such as oil. A closed circuit heat generating system includes a pump and a further reservoir circulating a fluid such as oil through a restrictor valve situated within the liquid in the main reservoir thus generating heat which is picked up by the fluid in the main generator and transferred to the heat exchanger. Forced air or hot water may be heated by the heat exchanger and conveyed to remote locations in a building by conventional means and the restrictor may be adjustable to control, within limits, the heat generated by the forcing of the fluid through the restrictor valve.</p>