Foam is widely used in the petroleum industry thanks to its unique properties and performance. Its application to water control in oil wells has received more and more attention. The stability of nitrogen foam was investigated in pressurized equipment and sand pack. The result indicated that with increasing pressure (0–2 MPa) the stability of foam in the pressurized equipment increased linearly. Increased nitrogen injection pressure caused better dispersion of nitrogen-foaming solution in porous media. The initial residual resistance factor to gas was an exponential function of injection pressure, but the residual resistance factor (to gas and liquid) decreased exponentially with time. The half-life of foam in porous media (expressed in residual resistance factor) was much longer than that in bulk phase (expressed in foam height). Pore model analysis indicated that good dispersion in porous media and the presence of thick liquid film during dispersion were the main reasons for high stability. Field test indicated that effective residence of foam in the formation not only resulted in much better heat insulation, but also improved steam stimulation by enhancing steam heating.