An improved method of producing hydrocarbons from a subterranean formation in which a solids-stabilized emulsion (SSE) is formed, the SSE comprising oil as a first liquid, droplets of a second liquid suspended in the oil, and solid particles that are insoluble in both the oil and the second liquid at the conditions of the subterranean formation. The SSE with dissolved gas is injected into the subterranean formation as a drive fluid, and at least a portion of the SSE is placed into one or more area of the subterranean formation having an in situ pressure sufficiently lower than the selected partial pressure to permit evolution of at least a portion of the gas from the oil. Furthermore, a method of making the foamy SSE is also provided.