One is to reduce debt costs.

Therefore, these companies that rely heavily on their financing capacity may issue debt at lower prices.

The second is that when U.S. pension funds cannot earn returns in traditional fixed-income markets, they increasingly invest their money in riskier assets, such as hedge funds that invest in credit and private equity companies.

In turn, these entities are increasingly investing in shale gas.

Related situations: Oil majors are still trying to improve their operations.

Shell announced that the cost of oil wells has dropped to US$5.5 million per well, a 60% drop since 2013.

Normally, one drilling well is developed for each oil field, but they develop 5 drilling wells for each oil field.

Each well is drilled 20 feet apart.

Saves the cost of relocating drilling.

Chevron expects shale oil production to grow at an average annual rate of 30% over the next decade. ExxonMobil will allocate one-third of its drilling budget to shale oil this year and expects its shale oil production to quadruple by 2025.

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Deborah Byers, an analyst at energy consulting firm Ernst & Young, said the arrival of the oil majors is significant for shale oil.

Oil giants can use their strong capital power to develop huge oil resources.