Worldwide mergers and acquisitions in the upstream sector have started a little slower in 2013 than in previous years, but a series of conditions mean the market is ripe for an active year, according to a recent study from Morgan Stanley & Co.

“Macro conditions for M&A appear ripe in 2013, with debt cost near record lows while cash and (private equity) positions near highs. Within energy, we see activity driven by a focus on strategic needs, people and play consolidation,” the report states.

Moving forward, Morgan Stanley analysts say ...