I don't think an oil heater would be a good ideal, unless they are set up to vent outside of the room. Oil heaters can put out alot of carbon monoxide which could poison your animals. For a 10x10' room that is well insulated, you may not need additional heat, if you have heat tape or whatever, heating all the cages individually. Unless you have winters like I do up here in Canada, where it can go as low as -35C before wind chill factors.

Good insulation, floors and walls, with a vapor barrier will help with keeping heat in and humidity (providing heat source doesn't dry out the air a lot). The real barrier is your building skills and how much money you have to build the room. You may be able to cut costs a bit if your garage shares a wall with your house. Building the room so it also shares a wall with your house will mean one less wall to build. The house side should already have good insulation as it would be considered an 'outside' wall (with a non heated garage).
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PHLdyPayne

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