Abstract: A thermal insulating fluid which is well suited for the insulation of steam injection wells comprises a heavy oil having an API gravity of not more than 15.degree. and a water content of not more than about 5% by volume as a major liquid portion, a light oil as a minor liquid portion, a smectite-type clay in an amount sufficient to impart thixotropic properties to the fluid, calcium oxide in an amount sufficient to maintain gel strength at elevated temperatures and to inhibit light oil losses through evaporation, and hydrated amorphous sodium silicate with a SiO.sub.2 /Na.sub.2 O modulus ratio of about 3 to about 4 present in an amount sufficient to reduce thermal conductivity of said thermal insulating fluid.