A method for forming an insulated conductor heater includes placing an insulation layer over at least part of an elongated, cylindrical inner electrical conductor, placing an elongated, cylindrical outer electrical conductor over at least part of the insulation layer to form the insulated conductor heater; and performing one or more cold working/heat treating steps on the insulated conductor heater, reducing the cross-sectional area of the insulated conductor heater by at most about 20% to a final cross-sectional area. The cold working/heat treating steps include cold working the insulated conductor heater to reduce a cross-sectional area of the insulated conductor heater; and heat treating the insulated conductor heater at a temperature of at least about 870° C. The insulation layer includes one or more blocks of insulation.