SpaceX is seeking to employ a natural gas trader for its rockets and chips.

      SpaceX is looking for a natural gas trader to establish and lead a trading team for its fuel and power requirements, as reported by Bloomberg. Julian Hast, who monitors US gas markets from Houston, discovered the job listing on Friday.

      The position “centers around physical and financial natural gas trading,” according to the description.

      Job Location

      The announcement specifies that the job will be based either in Cape Canaveral, Florida, or Starbase, Texas. Neither of these locations is known as a center for gas trading, as the company primarily operates from Houston, Calgary, and Stamford, Connecticut, none of which are included in the hiring plans. The posting indicates that remote work will not be an option, meaning the hired individual will work close to the rockets or the manufacturing facility. Cape Canaveral is SpaceX’s launch site in Florida, while Texas aligns the trader with the state of the semiconductor factory that requires power.

      Reason for a Rocket Company to Use Natural Gas

      Starship uses super-chilled methane combined with liquid oxygen, where methane is a principal component of natural gas. Therefore, gas serves as a raw material for SpaceX instead of merely an operational cost. This highlights the distinction between purchasing electricity and procuring materials like steel.

      The Connection to a Semiconductor Factory

      Earlier this month, SpaceX announced plans to construct its own gas-fired power plants to supply energy for the semiconductor plant it is developing in Texas in conjunction with Tesla. Musk began construction on this $16.8 billion facility at the start of August, describing it as the most valuable building in the world. Such a large facility requires a stable power supply that standard utilities may not be able to provide quickly enough due to rising energy demands influenced by data centers and new factories driving developers toward new gas plants across the United States.

      Interest in Drilling for Gas

      In June, SpaceX's president and COO, Gwynne Shotwell, elaborated that the company plans to construct its own gas pipelines and is exploring the possibility of drilling for natural gas directly. She mentioned in a CNBC interview that these are “significant investments to cultivate our own propellant and deliver it to the rocket.” This literally means procuring a rocket fuel source from the commodity market rather than relying on an external supplier. Fuel transitions from an ordered service to a commodity held as an asset.

      A Clear Strategy Emerges

      Taking all this information into account, the strategy becomes evident: drill for gas, transport it through pipelines, trade it, combust it in power plants, or liquefy it for use in a Starship.

      Previous Similar Endeavors by Musk

      Musk has consistently favored vertical integration, as noted by Bloomberg, and the move toward establishing gas plants aligns with this approach. Owning the fuel supply introduces similar instincts into a commodity market, creating a different kind of business model with unique risks.

      Wider Trend Among Corporations

      According to Bloomberg, major companies like Meta and OpenAI are also moving into power trading as their energy needs increase. OpenAI is looking to hire a lead for power trading related to its data center operations, and this month, electrical power has transitioned from being merely an expense to a position on its balance sheet. Meta has adopted a similar approach, exiting the RE100 agreement as its gas projects surpassed its renewable initiatives. Nvidia has recently invested in three land and power companies, including acquiring a stake in Cloverleaf. The trend is evident: companies that once purchased energy are evolving into entities that source their own.

      SpaceX's Ambitious Plan

      SpaceX differentiates itself from these organizations by desiring not only electricity for its facilities but also the same natural gas for its fuel tanks.

      Understanding the Nature of a Trading Desk

      A trading team differs from a procurement team; physical trading involves receiving gas and distributing it where necessary, while financial trading encompasses holding contracts amid price fluctuations. Both avenues help avoid being mere price takers, which is crucial for a company that must fuel its launches timely and sustain uninterrupted operations at its fabrication site. This level of involvement also means that an aerospace company begins to undertake the risks associated with an energy company; a poorly timed hedge could incur losses regardless of the business focus.

      SpaceX is Now Publicly Traded

      SpaceX made its Nasdaq debut in June, altering the significance of a trading desk, as positions and hedges will eventually affect financial statements visible to investors. Concurrently, the company's revenue model is undergoing a transformation. Musk mentioned in a recent all-hands meeting that he expects SpaceX’s AI division to surpass rocket-related earnings by September, which underscores the importance of the chip factory in this narrative. Tesla, a key partner in this factory, has also been discussing a potential sell-off in China that could facilitate a merger with SpaceX, making the energy initiatives relevant to this development.

      Challenges at Starbase

      The Texas aspect relates to Starbase, where 80 residents filed a lawsuit against SpaceX in June, claiming that rocket launches were causing damage to their homes