A novel composite catalyst with readily preparation and good catalytic performance was designed and synthesized using sulfonation‐modified zeolite socony mobil‐5 (ZSM‐5) as the carrier and nano‐CoO/NiO as the active components. Compared with traditional in situ conversion, the composite catalyst could effectively reduce the activation energy of catalytic reactions, improve the efficiency of oil and gas conversion, and ameliorate the quality of oil products. When the loading amount of nano‐CoO/NiO was 20 wt% and the silicon/aluminum ratio of ZSM‐5 was 40–50, the required activation energy for oil shale cracking was as low as 43.64 kJ/mol, the yield of oil products was as high as 15.46 wt%, and the content of organic compounds in medium‐/low‐carbon hydrocarbon was as high as 71.50%. The prepared composite catalysts had low preparation cost, environmental friendliness, and significant catalytic effects, providing a feasible approach for the effective exploitation and utilization of oil shale.