so i know there have been many discussions about weather you need an 02 sensor or not or if you need a heated o2 sensor for headers. so a old school guy i know told me that with the tbi engines you dont need an o2 sensor unless you have catylitic converters BECAUSE the converter restricts exhaust for the o2 sensor to read and send to the computer or pcm. meaning no converter then no need for o2 sensor. he said he did that with all his tbi trucks and they ran completely fine a every once and a wile the engine light would come on but go back out. so put long tube headers and dual exhaust on my 87 350 tbi with NO o2 sensor and it runs way better and havent had the check engine light come on yet. so i hope this will save you guys who are devating this to save some money.if youve had different expiriances than speak your mind.
As the guys have said there's no truth in anything he told you...
If you don't have a CEL without an O2 hooked up? Something else is wrong because you should set a DTC 13 for O2 sensor.
O2 sensor is not needed for EFI! It's an emissions device that adjusts fueling to Stoich. They run fine without, but do run cleaner and depending condition of motor, pressure of fuel, modifications to engine? Run better as in more power! Why? Because the Open Loop AFR table is richer then the O2 sensor adjusting to Stoich.
The biggest reason people have issues with long tube headers and vehicle not running correctly is you moved the O2 sensor about 3 feet back in exhaust from stock. There is a setting/Parameter for this, "INT Vs Airflow" INT is Integrator which is the Short Term Fuel Trim. STFT moves to adjust fuel and depending on how much it moves sets the BLM (Block Learn Mode) also known as Long Term Fuel Trim. So the O2 sensor is reading exhaust at wrong time since it has last made an adjustment. This ends up as a constant fluctuating fuel trims! It's totally confused as to why it goes up and down and up and down.... this setting is in milla seconds/ms.
EFI is like a miracle tune that constantly keeps you dialed in. But it can only provide miracles within a certain range, it's not infinite! The tune in chip was built for that motor as is! Change exhaust, change intake, change cam etc... well the tune/chip or proper term "Calibration" needs to be set for those changes or you don't see all the benefits. You could actually see a loss in power and MPG!!!
There's also tune up issues, if your cap and rotor are worn? Spark plugs worn? etc... well... the bigger issue is fuel pressure! Most important factor that the ECM has no idea what it is. GM says between 9-13 PSI!!! Yes it will run between those pressures and the ECM is almost capable of keeping it running right through that range. But if you don't have 12-13 PSI you will not have all the power at WOT, no way! Also have issues at cold start when engine is running Open Loop... then WHAM! Goes Closed Loop and O2 sensor feedback says...

add fuel, add fuel!!!
The biggest benefit from running an O2 sensor is... say you have dialed in your tune perfectly from data recorded from ECM? You did this on a dry day at 70f... well as temps and humidity change your perfect tune is no longer perfect! But the O2 sensor and calibration in the ECM is capable of keeping it perfect!