I believe I'm right in saying that you can get purpose-built stoves that burn engine oil
Luxo - you certainly can - getting them going is another thing - most owners of this type of heater mix the oil with paraffin or diesel
He has a licence from the environment agency to operate it.
I'm not sure if he needs one because it is customers oil he is burning or if you need one in general.
Terry - Used oil is classified by the Environment Agency as a 'Waste Product' - if you dispose of it you must have a licence to do so, same rules apply for any commercial business burning waste of any type (although you can get away with wood / logs - which the EA still class has waste)
In the workshop we have two bits of kit for washing off / degreasing - the dirty one is a 500 litre plastic tub (big enough for gearboxes / engine blocks - a strong grid mesh supported off the bottom of the tub with a couple of bricks and a cheap 12 volt bilge pump - built from scrap bits - it cost nothing but a couple of hours to put together
The clean one - used prior to final assembly is a proper parts washer with a pump - I think it was about £150 when purchased a few years ago
We use red diesel in them both - so if you know a local farmer / marina / plant hire company - take a drum and they will sell you a few litres / gallons (going rate is circa £1.10 litre)
A cheap and simple way for washing off is go and purchase a cement / mortar spot board from Wickes - this is a plastic tray about 1500mm x 1500mm (last time I purchased one it was about £15) - they have a upstand edge to them - easily large enough for gearboxes / engine blocks etc - once washed down remove the part and tip the dirty fluid back into a can - you can then leave for a few months for the solids to settle out to the bottom and decant the reusable fluid off the top - alternatively just take it to the council tip with your waste oil (the tray then comes in handy has a drip tray for oil changes or just to stick under a motor that has a few oil leaks - we use them at work for drip trays for refuelling plant & machinery)
I employ the same recycling procedure with my used paint thinners for spray gun washing / cleaning down etc
Lastly you could always use spirit wipe - its cheap enough at about £10 - £15 for 5 litres - is very handy stuff to have about in the garage - cleans no end of things without damaging paintwork - available from motor factors / automotive paint suppliers or even E Bay - No waste either as the spirit evaporates

1937 Jowett 8 - Project - in less pieces than the Jupiter
1943 Jowett Stationary Engine
1952 Jowett Jupiter - In lots of peices
http://Jowett.org/
1952 Jowett Javelin - Largely original
1973 Rover P6 V8 - Original / 22,000 miles