Casing shear deformation has become a serious problem in the development of shale gas fields, which is believed to be related to fault slipping caused by multistage fracturing, and the evaluation of the reduction of a casing’s inner diameter is key. Although many fault slipping models have been published, most of them have not taken the fluid-solid-heat coupling effect into account, and none of the models could be used to calculate the reduction of a casing’s inner diameter. In this paper, a new 3D finite element model was developed to simulate the progress of fault slipping, taking the fluid-solid-heat coupling effect during fracturing into account. For the purpose of increasing calculation accuracy, the elastoplastic constitutive relations of materials were considered, and the solid-shell elements technique was used. The reduction of the casing’s inner diameter along the axis was calculated and the calculation results were compared with the measurement results of multi-finger caliper (MFC) surveys. A sensitivity analysis was conducted, and the influences of slip distance, casing internal pressure, thickness of production and intermediate casing, and the mechanical parameters of cement sheath on the reduction of a casing’s inner diameter in the deformed segment were analyzed. The numerical analysis results showed that decreasing the slip distance, maintaining high pressure, decreasing the Poisson ratio of cement sheath, and increasing casing thickness were beneficial to protect the integrity of the casing. The numerical simulation results were verified by comparison to the shape of MFC measurement results, and had an accuracy up to 90.17%. Results from this study are expected to provide a better understanding of casing shear deformation, and a prediction method of a casing’s inner diameter after fault slipping in multistage fracturing wells.