AbstractSteam assisted gravity drainage (SAGD) has been known as a commercially proven high ultimate recovery process for bitumen and heavy crudes. It is an energy intensive process, which is economical when oil price is above certain value. When the oil price goes below the economic threshold of project, steam injection can be decreased or completely stopped for a certain period of time, and can resume thereafter when the condition alters. The objective of this study is to provide comprehensive information about the effect of steam injection interruptions on thermal project performance. An optimization strategy for the SAGD process, in cases where steam injection interruption occurs, is discussed using actual reservoir models of different geological formations. An economical model is used to evaluate operating strategy effect on the net present value (NPV) of the project. The parameters, like shut‐in period, initial steam injection period, etc, are optimized for Athabasca type oil sand reservoirs. The results show several key mechanisms exist in the life cycle of the SAGD process that must be included to reflect the field scale behaviour; otherwise, the mechanistic simplicity of the models could lead to directional and semi‐quantitative conclusions. Among the mechanisms, temperature effect on basic petrophysical properties of reservoir rocks was found to have an important role in the oil recovery, and considerably impacts the results of optimization. When the steam injection is interrupted, an optimum shut‐in period can be determined to maximize the oil recovery. The optimum length of steam injection interruption depends on the initial steam injection period.