Ever see that show on The Learning Channel called Trading Spaces? It has two neighbors swap houses for a couple days to remodel each other’s rooms. There have been some surprising results, from an all black room (which was not what the owners had in mind) to wonderfully tasteful decor.

That’s why it’ll be interesting when two countries swap sectors: the UK could be the next oil frontier and Dubai could be the next major hotel owner in Europe.

Let’s start with the more unusual of the two…

The UK has been beholden to imported natural gas since 2004, and could be a net importer of oil by 2010 once the North Sea reserves really begin to run dry. North Sea oil accounts for 98.5% of UK production. Onshore oil fields produce only 24,000 barrels of oil a day.

To give you an idea of just how little that amount is, 24,000 barrels of oil is less than two-minute’s worth of U.S. oil consumption.

But now there’s a push to expand the UK’s onshore oil industry. In May, 97 new licences were issued for onshore oil and gas exploration. The BBC notes that five years ago, only five were awarded.

Let’s face it, though… The UK will never be the next Brazil, who was lucky enough to find a massive oil reserve right off its coast. But the phrase “self sufficent” in the face of $115 oil (that is climbing higher because of Tropical Storm Gustav and that topped out at $147 earlier this year) is a strong enough magnet for prospectors like Egdon Resources (LON:EDR), who snapped up six of those new licences.

Now, on to Dubai…

KOP capital is controlled by Dubai Group, but is based in Singapore. We’ll get back to Singapore in a minute.

The company has announced it will buy a 50% stake in Stein Group, which owns a chain of luxury European hotels with facilities in London and Monte Carlo. The deal is worth $250 million. Apparently KOP Capital had been in the market for an international chain for quite some time.

One of the things Stein Group is planning is acquiring small luxury hotels in Asian cities. Places like Beijing (no surprise there), Tokyo, and yes, Singapore.

Sounds like a natural fit…

So it looks like both countries are happy in their “new spaces”. One out of necessity and one out of excess capital.

The UK’s new licenses might help out some small companies like Egdon Resources, but remember. Oil reserves in the UK are likely to be small (between one and 10 million barrels), so upside is limited. On the Dubai side, KOP Capital and Stein Group are not publicly traded, but keep an eye on their expansion and acquisition plans. They might yield some juicy opportunities.

Source: Oil in the UK and Dubai in Europe