A method for improving oil recovery within a subterranean formation that includes forming a barrier within the formation to isolate at least a portion of a first region from a proximate second region. The barrier is formed by introducing a first solution including an ammonium containing compound and a second solution including a nitrite containing compound into the formation. The first solution, the second solution, or both, further include a foaming agent. The compounds react to generate nitrogen gas in the presence of the foaming agent to generate a foam within a first region. The foam provides the barrier. Water is introduced into the formation. The barrier diverts the water away from the first region and into the second region. The water operates to displace at least a portion of a hydrocarbon present in the second region and discharge the hydrocarbon from the formation.