The global push for sustainable energy solutions has highlighted the importance of producing carbon-zero hydrogen (H2) directly from petroleum reservoirs. In-situ combustion gasification (ISCG) presents a groundbreaking method to harness the potential of heavy oil reserves for clean hydrogen production. Although simulations have demonstrated the considerable promise of ISCG, the key reactions controlling hydrogen generation require experimental validation, and the underlying mechanisms remain largely unexplored. This research aims to describe the chemical reactions and mechanisms responsible for hydrogen generation during the ISCG of heavy oil. Using a specially designed kinetic cell, we conducted combustion and gasification experiments with heavy oil and coke. The findings revealed that clay minerals in the reservoir sand act as catalysts in the oxidation reactions of heavy oil by shifting reactions to lower temperatures by approximately 20 °C. Hydrogen production began at 450 °C and peaked at 900 °C, with coke gasification and the water-gas shift reaction being the primary mechanisms. Additionally, methane was produced due to hydrogen consumption via methanation reactions, and minerals in the reservoir sands were found to inhibit hydrogen production by increasing hydrogen consumption and methane generation at temperatures above 800 °C. Controlling the reservoir temperature within an optimal range between 450 and 800 °C can enhance hydrogen generation by managing the process mechanisms. This study provides a detailed examination of the ISCG process for heavy oil, paving the way for future development of kinetic models to simulate hydrogen production through ISCG. It also emphasizes the significance of mechanistic control in enhancing hydrogen generation and suppressing hydrogen consumption reactions.