SpaceX is looking to hire a natural gas trader for its rockets and chips.

      SpaceX is currently seeking a natural gas trader. The company aims to establish and lead a trading team to meet its own fuel and power requirements, as reported by Bloomberg. Julian Hast, who covers U.S. gas markets from Houston, discovered the job listing on Friday.

      The position emphasizes “physical and financial natural gas trading,” according to the job posting.

      Location of the job

      The job can be based in either Cape Canaveral, Florida, or Starbase, Texas. Neither location is known as a gas trading hub. The company's operations are primarily located in Houston, Calgary, and Stamford, Connecticut, but it is not hiring in any of these areas. The posting specifies that remote work will not be an option; the new hire will work near the rockets or the manufacturing facility. Cape Canaveral serves as SpaceX’s launch site in Florida, while the Texas location would position the trader close to the chip plant that the gas is intended to power.

      Why a rocket company requires gas

      Starship utilizes super-cooled methane combined with liquid oxygen, and methane is the primary component of natural gas. This makes gas a necessary resource for the company rather than just a utility expense; it is akin to purchasing steel instead of electricity.

      The additional reason ties to a chip factory

      Earlier this month, SpaceX announced its plans to construct its own gas-powered plants to provide energy for the semiconductor facility it is developing in Texas alongside Tesla. Musk initiated work on this $16.8 billion fabrication facility in early August, referring to it as the “most valuable building on Earth.” Such a large plant requires reliable power, which must be available sooner than what a utility can typically provide.

      The increasing demand from data centers and new manufacturing plants has already led developers toward new gas facilities throughout the U.S.

      It also wants to explore drilling

      In June, Gwynne Shotwell, SpaceX’s president and COO, revealed that the company intends to build its own gas pipelines and is exploring the possibility of drilling for gas. These plans constitute “significant investments to develop our own propellant and provide it to the rocket,” she stated in a CNBC interview.

      If taken literally, this means sourcing a rocket fuel input directly from a commodity market instead of relying on suppliers, thereby transitioning from merely ordering fuel to holding a position in it.

      When examined collectively, it becomes evident: drill for gas, transport it, trade it, use it in a power plant, or convert it into a form suitable for Starship.

      Musk's history with this strategy

      Musk has a longstanding inclination towards vertical integration, as noted by Bloomberg, and the gas plants align with this trend. Controlling the fuel supply applies his instincts to a commodity market, which presents a different type of business model and associated risks.

      Big players are adopting similar strategies

      According to Bloomberg, companies like Meta and OpenAI are indicating their intentions to enter power trading markets in response to growing energy needs. OpenAI is recruiting a power-trading lead for its data center operations, shifting its electricity usage from an expense line to an asset on its books. Meta has also moved in a similar direction, recently departing from the RE100 pact as its gas infrastructure development surpassed its renewable energy efforts. Additionally, Nvidia has made investments in three land and power companies this month alone, most recently acquiring a stake in Cloverleaf.

      This trend illustrates that companies traditionally reliant on purchasing energy are now becoming entities that source it. SpaceX takes this a step further than others by aiming to secure not just electricity for chip-filled buildings but also the same molecules for its fuel tanks.

      What a trading desk actually offers

      A trading team differs from a procurement team, as physical trading involves taking delivery of gas and transporting it to required locations, while financial trading involves maintaining contracts that respond to market price fluctuations. Both approaches enable a company to avoid being just a price taker, which is crucial for an organization that needs to fuel launches on a set timeline and operate a manufacturing facility without interruptions.

      However, engaging in these trading activities also introduces the risks associated with energy markets. Any hedge that goes awry results in a loss, regardless of the company’s original focus or industry.

      SpaceX's new status as a public company

      SpaceX made its Nasdaq debut in June, altering the implications of what a trading desk entails, as the values and hedges will eventually be reflected in publicly accessible financial statements. At the same time, the company’s revenue structure is evolving. Musk recently shared with employees that he anticipates SpaceX AI to surpass rocket earnings by September, highlighting why a chip factory is central to this narrative. Tesla is also part of this operation, with reports suggesting it is considering a sell-off in China to facilitate a merger with SpaceX, further emphasizing the importance of the energy initiatives.

      Starbase isn't just an empty lot

      In Texas, at Starbase, 80 residents filed a lawsuit against SpaceX in June,