It's certainly safe. Butter, Oil, whatever, it's more about taste than anything else. Some people even push lard and butter as the "safe" options, because they require less processing than oil, and much less than margarine.
One thing which you should be aware of in regards to butter vs oil: butter has a significant amount of water in it, so you shouldn't substitute 1-to-1, or you will have a stronger flavour (and more fat) than perhaps you want.
If you're accustomed to salted butter, adding some salt will help ease the transition. If the flavour of olive oil is off-putting, there are plenty of more neutral flavoured oils that have a similar fat composition, or you can simply avoid extra virgin olive oil*.
*extra virgin olive oil in the U.S is largely a scam. In most of the world (countries that adhere to the IOC standard) this signifies "First Cold Press" olive oil. In the US it signifies "lamp grade olive oil with green food coloring". There are no restrictions on the use of terms like "extra virgin" in the US, so you can't guarantee that's what you're really getting just because it's on the label.
Interesting question. Did search 'how do I make puffed rice'. Came up with some interesting information.
There are some writings that suggest that puffed rice can be made like popcorn; get the moisture in the grains of rice to the correct level (no idea what the level should be, experimentation should guide you I suppose) and then (depending on what source you read) put in a popcorn popper, put it on sheets in the oven or fry it in oil.
The history indicates that the first puffed rice made in the U.S. was actually shot from a cannon, after, I presume, being thoroughly soaked to some level of softness; there was a cereal advert in the '60s that bragged "this is the cereal that's shot from guns". Am thinking that the softening of the rice, probably by cooking, and then putting it into a pressure vessel in which the pressure is allowed to rise to a certain PSI (pounds per square inch) and explosively releasing the pressure, causes the grains to boil or fizz or effervesce, gives them the light puffiness we see at the market.
If I'm reading the information correctly, the devices to make puffed rice are available
Here is a link to a video showing the explosive creation of puffed rice by a traveling puffed rice manufactury on a bicycle in Taiwan;
http://video.google.com/videoplay?docid=-3915559836111131480#docid=-4928826327589404249
Here are some other links, kind of vague, regarding non explosive puffed rice:
http://recipes.howstuffworks.com/question393.htm
http://www.cheftalk.com/t/20752/how-to-make-puffed-rice
http://www.indiamike.com/india/indian-recipes-f108/how-to-make-puffed-rice-at-home-t94003/
This last link has some history & speculation of how puffed rice has been made non explosively using hot salt, or sand...didn't read all of the ideas.
Have fun, and be safe.
Best Answer
Senbei (Japanese Rice Crackers) are made with already seasoned rice paste... However the glaze that makes Senbei attractive is added after the crackers are cooked... This may work for your rice cakes. The "glaze" is simply a combination of low salt soy, and honey which is then dried off in a hot oven after the crackers have been baked.
Could you possibly use a similar process to flavor your crackers?