Space Exploration Technologies Corporation (SpaceX, 2038)
University of North Carolina Model United Nations Conference (UNCMUNC) 2014 Carolina International Relations Association
Carolina International Relations Association
Letter from the CEO Dear Friends and Colleagues, Welcome back to SpaceX! Glad you could make it for our regularly scheduled executive leadership meeting. This company was founded 36 years ago, and in that time we’ve made a tremendous amount of progress. However, we must not lose sight of the things that make us great; falling behind for even a second will result in the rest of our competition leaving us in the dust. This year, 2038, brings with it a whole host of unique challenges, and we, as this company’s executive leadership team, need to tackle them. Of course, even with the amount of success we’ve had, we still run on a finite budget. That means that not everyone is going to get the full proportion of the budget that they want; instead, we will attempt to reach logical conclusions by trying to reach a team-‐wide consensus. We also need to decide who to sell to, as well as which new markets to expand into. These are all strategic questions that we will need to answer in the foreseeable future.
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Sincerely, Elon Musk Chief Executive Officer & Chief Technology Officer Space Exploration Technologies Corporation
UNCMUNC 2014: SpaceX 2038
Space Exploration in the 21st Century Excerpts from: “SpaceX Company History” The Space Exploration Technologies Corporation develops and designs the world’s most sophisticated spacecraft and rocket systems, and prides itself on its status as a major thought leader in propulsion and fuel technologies. Founded in 2002, SpaceX is focused on continuously pushing the boundaries of human space exploration. Its chairman and CEO, Elon Musk, is widely hailed as a visionary intent on pushing the boundaries of technological innovation. In 2012, Musk revealed his desire to ultimately found a colony on Mars. Since it’s founding, SpaceX has played a pivotal role in making up for NASA’s various budget shortfalls. One of Elon Musk’s earliest stated goals was to reduce costs and improve reliability of access to space by a factor of ten. The company landed a contract with NASA in 2006 to develop cost-‐effective access to low-‐Earth orbit.1 In 2008, SpaceX had its first of many successes with its Falcon 1 rocket, which became the first privately developed liquid fuel rocket to reach Earth orbit.2 Later that year, in its biggest coup yet, SpaceX landed an extremely lucrative $1.6 billion commercial resupply services contract from NASA.3 The contract covered 12 total flights to the International Space Station, which would be served by the Falcon 9 (successor to the Falcon 1) rocket with the new Dragon spacecraft contained within. In 2010, Dragon became the first private spacecraft to successfully return from Earth orbit, and in 2012, Dragon became the first private spacecraft to deliver and return cargo successfully for the 1
http://www.nasa.gov/exploration/news/COTS_selection.html http://www.space.com/5905-‐spacex-‐successfully-‐launches-‐falcon-‐1-‐rocket-‐orbit.html 2 http://www.space.com/5905-‐spacex-‐successfully-‐launches-‐falcon-‐1-‐rocket-‐orbit.html 3 http://www.nasa.gov/home/hqnews/2008/dec/HQ_C08-‐069_ISS_Resupply.html 2
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International Space Station.4 Later that year, SpaceX began construction of two new prototypes, Grasshopper, a then-‐ experimental reusable rocket, and Falcon Heavy, an improved rocket designed to handle heavy payloads. Both were intended to push the development of reusable launch vehicles that could carry significant cargo and personnel. The Grasshopper was designed “not only to withstand reentry, but also to return to the launch pad for a vertical landing.”5 2013 saw SpaceX delivering the first commercial communications satellite into geostationary orbit with the Falcon 9 rocket, a launch that upended the commercial satellite delivery industry.6 During the next several years, SpaceX would focus its efforts on perfecting the Grasshopper prototype, with the end goal of developing a reusable orbital launch system. By 2016, it began sending manned Dragon modules into space at NASA’s behest and successfully completed testing the Falcon Heavy rocket. Later that year, SpaceX completed construction of its own private launch facility, the Nikola Tesla Launch Center, near Brownsville, Texas. In 2017, it began early stage testing for a Falcon rocket prototype integrated with Grasshopper technology – this prototype would become the breakthrough Falcon G rocket that took the industry by storm five years later. By 2018, SpaceX had become the go-‐to company for firms seeking to launch communications satellites into space, and had entered into talks with the Office of the Director of National Intelligence to take over launch duties for its surveillance satellites. Finally, after the commercial space station manufacturing firm, Bigelow Aerospace, 4
http://www.space.com/18852-‐spacex-‐dragon.html http://www.space.com/23193-‐spacex-‐grasshopper-‐rocket-‐highest-‐hop-‐video.html 6 http://news.discovery.com/space/private-‐spaceflight/another-‐giant-‐leap-‐for-‐spacex-‐geostationary-‐orbit-‐ 131213.htm 5
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ran into serious financial difficulties, SpaceX purchased it in late 2018 to lease out individual modules to NASA and private firms, as well as use it to conduct its own research on advancing the feasibility of long-‐term extraterrestrial habitation. However, SpaceX made a landmark acquisition in 2020 that would expand its influence greater than any thought possible. Early that year, the founders of the asteroid mining firm, Planetary Resources, tragically perished when their chartered plane crashed en route to a conference. This tragedy left industry sent the company’s valuation plummeting, and left experts speculating if Planetary Resources could survive without its charismatic founders. Elon Musk himself hadn’t even considered the possibility of an acquisition, as SpaceX’s focus was on perfecting reusable rockets, not on asteroid mining. However, a series of pitches by a team of the firm’s best engineers and researchers changed his mind. They argued that the potential profits generated from asteroid mining could provide SpaceX with enough money to fulfill the company’s stated mission of enabling humans to live on other planets. By the end of the year, SpaceX had announced its intentions to acquire Planetary Resources, keeping the dream of asteroid mining alive. Following the original timeframe set out by Planetary Resources, SpaceX brought the first asteroid to high Earth orbit by the year 2025. Mining operations began a year later, and expanded in earnest over the next decade as several more asteroids were subsequently brought into high Earth orbit. In 2030, SpaceX faced a significant legal challenge from the US government, its primary benefactor. Seeing that nations such as China possessed space programs funded completely by the government, the US government grew wary of the fact that the secrets to NASA’s competitive advantage weren’t contained in-‐house; rather, they remained privately controlled. 5
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As a result, the government passed the Space Contractor Oversight Act, which required private contractors in the aerospace industry to allow government access to files on all major projects. Needless to say, this decision was met with widespread outrage from SpaceX, which organized a consortium of aerospace companies that sued the U.S. Government, leading to the landmark Supreme Court case American Aerospace Consortium v. United States. In 2032, the Supreme Court ruled in the Consortium’s favor. Moving forward, SpaceX’s relationship with the US government became noticeably chillier. However, neither party was interested in significantly weakening one of the industry’s most important and profitable relationships. SpaceX spent the next five years continuing its work on asteroid mining and completing construction of the world’s first commercial moon base in 2037, the first moon base having been constructed by the Chinese National Space Administration (CNSA) a year earlier, in 2036. Today, the company is known as the pre-‐eminent private launch company, the world’s pioneer in asteroid mining, and a thought leader on research in fields such as artificial gravity and the human habitation beyond Earth. Excerpts from: “SpaceX 2038 Investor Briefing” As of 2038, SpaceX offers a wide variety of products, services, and research. Our product offerings can be broken down into several distinct segments: launch services for cargo and astronauts, launch services for satellites, asteroid relocation & mining, and the construction and leasing of space station modules. We also possess a research division focused on our company’s mission of enabling human life on other worlds. Launch Services – Cargo & Personnel (LSCP) 6
UNCMUNC 2014: SpaceX 2038
SpaceX possesses an ongoing contract to supply NASA with launch vehicles for manned missions to space. We also own and operate our own commercial space station, commonly dubbed the “SpaceX Station” by popular media. We lease out commercially-‐built space station modules to the American (NASA), European (ESA), Japanese (JAXA), and Korean (KARI) space agencies, along with a host of private companies. SpaceX’s newest rocket, the Falcon G, is the world’s most widely used launch vehicle. The G was the first reusable rocket built, a feat achieved by SpaceX’s mastering of vertical landing technology in 2020. Two years later, the Falcon G Heavy was successfully tested, thus allowing for larger cargo shipments to and from space. The cargo and personnel themselves are often carried aboard a separately piloted Dragon spacecraft. Launch Services – Satellites (LSS) SpaceX entered the satellite launching industry in 2012. Satellites are launched via the reusable Falcon G rocket. Currently, the company controls a sizeable portion of this market, with many satellite communications providers around the globe choosing to launch through SpaceX due to our cost advantage – we still manufacture our products in-‐house with proprietary technology that cuts costs dramatically. Our company currently maintains a working relationship with the US Director of National Intelligence to launch surveillance satellites, although this relationship has cooled since the American Aerospace Consortium v. United States Supreme Court case was decided in the AAC’s favor in 2030. Asteroid Relocation & Mining (ARM) Asteroid mining currently represents one of SpaceX’s biggest potential growth areas. 7
UNCMUNC 2014: SpaceX 2038
We’ve figured out how to bring back asteroids that were orbiting close to Earth and have developed the means to robotically mine them for resources. The next step in this process is to develop the means by which we can access asteroids in the Asteroid Belt. Our technology is steadily improving to a point at which we can send autonomous spacecraft and robots to the asteroid, mine all the relevant minerals on-‐site, and make the return trip to Earth. Prospecting The importance of asteroid mining cannot be overstated. Asteroids can contain a wide variety of extremely valuable resources, such as iron, titanium, water and oxygen for astronauts, and hydrogen and oxygen for refueling. As a result of the Planetary Resources Acquisition in 2020, SpaceX inherited the Arkyd line of space vehicles. Even after continual upgrades, the naming convention has not changed through the present day. The Arkyd 100 Space Telescope is an asteroid-‐locating telescope that contains a precision imaging system designed to make asteroid prospecting easier. The Arkyd 200 Interceptor is essentially an Arkyd 100 with a propulsion system strapped to it. Its purpose is to collect data on potential targets during fly-‐ bys of Earth that would’ve normally remained undiscovered. The Arkyd 300 Rendezvous Prospector is an Interceptor designed to collect detailed information on prospects that lie farther out from Earth (primarily in the Asteroid Belt). As of 2030, the Arkyd 200 and 300 have been outfitted with specialized instruments that enable the actual mining of the asteroids themselves. The Arkyd 400, completed in 2030, is outfitted with the technology necessary to tow asteroids in from as far as the Asteroid Belt. However, this is still an imperfect solution, as such towing operations remain inordinately expensive.
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Platinum and Platinum-‐group metals – A single small asteroid might contain as much as $30 billion worth of platinum group metals. Platinum group metals are especially important in fields such as aerospace, medicine, military hardware, and modern electronics. Rare Earth metals – Asteroids also contain abundant quantities of rare earth metals. This is important, as rare earth metals are the cornerstone building block for a sizeable proportion of modern technology. This has significant geopolitical implications, as over 90% of the world’s dwindling rare earth metal deposits are located in China. Water – Perhaps the single most important resource in space. Asteroids with sizeable amounts of water could enable increasingly complex missions further out into the solar system. Types of Asteroids There exist three main types of asteroids that we mine: C-‐type asteroids contain a lot of water and things that could be used for a long term exploration mission; S-‐type asteroids are metal heavy; M-‐types have 10 times as much metal as S-‐type asteroids but are very rare. C-‐type, the most common, are carbonaceous, and consist of clay and silicate rocks. They exist furthest from the Sun, and so have been least altered by heat, meaning that they are the most ancient. Due to the fact that some have never even reached temperatures above 50°C, it is estimated they can contain up to 22% water. Can be used as bases for further exploration of the solar system S-‐type or siliceous asteroids are made up primarily of stony materials and nickel-‐iron. They inhabit the inner Asteroid Belt. These asteroids are the most common targets due to their high concentration of valuable metals. M-‐type, or metallic, are made up mostly of nickel-‐iron, and are found in the middle region of the Asteroid Belt. These are the proverbial jackpot of asteroid mining, but are also the most difficult to find. In summation, C-‐type asteroids could be used as bases for further exploration of the solar system, S-‐types are relatively common asteroid targets that yield precious metals, and M-‐ type asteroids are the cream of the crop, but are also farther away and harder to find.
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Mining the Moon & Mars Tests from autonomous scanners sent from our moon base (colloquially dubbed “SpaceX Lunar Base”) continue to discover significant deposits of helium-‐3. However, until the reactors needed to convert helium-‐3 into a viable fuel source exist, we are still unable to take advantage of this fact. Last year, we received the results of an early stage autonomous mining vehicle sent to Mars to test the feasibility of mining the planet for its ore deposits. Early indicators discovered significant deposits of important metals such as aluminum, molybdenum, and titanium, but we still need to improve our existing technology before significant mining operations could begin on the Red Planet.
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History of the World between 2014 and 2038 To provide a greater understanding of the business climate that we now operate in, it is critical for everyone to familiarize themselves with some of the most significant historical developments of the past 25 years. Excerpts from: “The Privatization of American Space Exploration in the 21st Century” “…The decade immediately following the September 11 attacks was a trying one for the world’s lone surviving superpower. Nearly bled dry by wars in Iraq and Afghanistan, and hobbled by crippling deadlock in Washington, the United States of the early 2010s looked like a shell of its former self. A relatively strong recovery in the latter part of the decade restored some enthusiasm for space exploration, but NASA’s budget allocations never fully recovered. As a result, NASA increasingly turned to private contractors to accomplish their objectives, and these private contractors would play a large role in shaping the future of space. However, by 2030, the US became anxious of the fact that nations such as China possessed space programs funded completely by the government. As a result, Congress introduced the ‘Space Contractor Oversight Act,’ which would’ve placed several departments of private space contractors under the direct supervision of the government. SCOA passed narrowly in 2030. Unfortunately for the government, the effort failed in the face of a furious legal challenge from private contractors, led by SpaceX, who successfully challenged the law in front of the Supreme Court. Consequently, an uneasy tension has existed between the government and firms like SpaceX, with both sides not fully trusting each other but recognizing that cooperation remained in both parties’ best interest. NASA currently leases 2 modules of the SpaceX Station and, after the 11
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failed effort to renegotiate the Outer Space Treaty, leased a module on SpaceX’s Lunar Base…” Excerpts from: “From Breakup to Unity: The Federalization of the European Union” “…Perhaps unsurprisingly, it took the specter of an outside threat to move the European Union of the 2010s past squabbling over the Euro crisis. The 2016 ascension of Ukraine and Moldova to the Eurasian Economic Community amid consistent pressure from Russian President Vladimir Putin came as a shock to Brussels, which had largely expected Ukraine to complete EU ascension by the decade’s end. Within the next year, Belarus, by this point economically and politically dependent on Russia, announced that it would be joining Russia in establishing the Union State of Russia and Belarus as a single sovereign entity. This announcement sparked outrage from citizens of EU members, who lambasted EU politicians as being too weak and divided to reach out to Belarus and prevent what they saw as outright annexation. “Faced with the prospect of a resurgent Russia attempting to expand its influence over the continent, the heads of state from all EU nations issued a joint declaration resolving to fix and reform the EU. By 2018, negotiations were in place to form a closer banking union, give the European Central Bank more power over monetary policy, and transfer responsibility for regulating and supervising banks from national governments to Brussels. A plan for establishing an EU-‐wide system of deposit insurance similar to the American FDIC, which stalled for years in the European Parliament, finally received enough momentum to be passed…” “…EU-‐Russian relations remained tense into the 2020s, as economic disputes revolving around oil and natural gas would periodically flare up. However, the EU itself found renewed 12
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vitality as a result of deeper integration. The stabilization of South European economies reduced income inequality across the Union, and the rise of 3D printing helped bring manufacturing back to the rich world. After a period of relative decline from 2008-‐2018, the EU again found itself a force to be reckoned with on the international stage. In contrast, the Eurasian Economic Community was starting to show signs of cracking. Non-‐Russian members expressed increasing skepticism that Russia was capable of providing long-‐term economic leadership, and many were exploring the option of strengthening ties with China…” “…At the dawn of the 2030s, the EU began allocating more funding to the European Space Agency in response to the increasing shortage of resources critical to sustaining the economies of the information age. The ESA currently leases 2 modules on the SpaceX Station that are primarily used to conduct research.” Excerpt from: “A Modern Perspective of East Asian Politics” “…Perhaps the most significant event in East Asia to occur in decades was the fall of the North Korean government in 2018. After a brief rogue attack on Seoul, the American and South Korean militaries quickly mobilized to invade the North and secure any nuclear materials. Relatively exasperated at its ‘client state’ by this point, China turned a blind eye after American leadership assured that no American troops would be stationed north of the 38th parallel after the conflict. After reunification, Seoul began the long, arduous road to speeding up development of the former North Korea. “However, Korean unification did not manage to bring stability to East Asia. Without the presence of China as a common security threat, high level Korean-‐Japanese cooperation 13
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decreased markedly over the next decade, while Chinese investments aimed towards developing the former North Korea were winning them plenty of goodwill in the South. More than a century after the First Sino-‐Japanese War, Korea once again found itself in the position of being the ‘prize’ in a dispute between China and Japan. This time, however, the prize was having access to a strong, economically powerful regional ally. This brought further headaches to the United States, an ally of both Japan and Korea. Soon after, Beijing began promoting the Shanghai Cooperation Organization as a legitimate international body, stoking fears in the West that China was attempting to create a counterweight to NATO…” “…In all three nations, politics and space grew increasingly intertwined in the 2020s, mirroring a trend seen worldwide. As space exploration technology became more accessible, all three nations used their space agencies as vehicles to bolster nationalist pride. Notably, China became the second nation after the United States to land a person on the moon, with the successful landing and return of the Long March 9 rocket in 2024. However, while Japan and Korea relied on the SpaceX Station to conduct their research, China focused on upgrading its own exclusive space station, the Tiangong. The next diplomatic flare-‐up would not occur until 2026, when China announced its intentions to build a lunar base, named Yuegong (‘Lunar Temple’). Strong negative responses from the US, Japan, and the ESA made it obvious that a new, clear legal framework was required to replace the Outer Space Treaty. However, years of negotiations failed to produce results, and after the Chinese completed their base in 2036, any hopes of negotiation appeared to be at a standstill, as the Chinese would not agree to cede claims to the area around Yuegong as a prerequisite for entering into negotiations…” 14
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Key Issues in Committee Budgeting & Company Mission Space Exploration is an expensive business, and despite fast growth in the past 25 years, we do not possess an unlimited pool of funds. Different branches of the organization will have to compete for finite resources, and these decisions are among the most important we make as executives. Keep in mind that our organization’s mission statement, as it has always been, is to enable the expansion of human life beyond the confines of Earth. Even though we currently lack the means to colonize outer space, delegates should always operate with this end goal in mind. Asteroid Mining Asteroid mining has always been an expensive proposition, and despite massive advances in technology in the last 20 years or so, mining an asteroid isn’t exactly cheap. However, the payoffs continue to be immense, with each asteroid potentially yielding tens of billions in revenue. Currently, we control about 70% of the market. Our main privately owned competitor in this space is Deep Space Industries, which commands about 25% of the market. The importance of our asteroid mining operations cannot be understated. The majority of modern-‐day technology runs on rare earth metals and platinum group metals, which are becoming difficult to find on Earth in commercially viable deposits. However, both can be found as a byproduct of mining asteroids, thus making them the world’s most valuable commodities. Therefore, we must constantly remain on guard from nations with major space
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programs. While they currently bring in large sums of revenue as large consumers of rare metals, many are undoubtedly looking for a way to bypass us, not wanting to cede control of some of the world’s most important metals to what they see as a potentially untrustworthy middle man. Whether that occurs through sponsoring homegrown asteroid mining companies or ordering space agencies themselves to spearhead the effort, we must be vigilant in maintaining our competitive advantage. Satellite Launches At this point, this is not SpaceX’s primary focus as an organization. Nevertheless, it has been a consistent revenue generator, with SpaceX providing launch services for both private and governmental entities. The key question here is whether it’s in the firm’s best interest to continue to provide launch services for US surveillance satellites, as the AAC lawsuit severely shook the firm’s faith in the US government’s reliability as a partner. On the flip side, SpaceX is also considering expanding its launches of surveillance satellites to notable US allies, such as the ESA and JAXA. Surveillance satellite launches pay a hefty sum greater than standard commercial launches. Therefore, as an organization, we must decide whether or not launching surveillance satellites for governmental entities is in the firm’s best interest, or if we would be better served focusing on commercial satellite launches. Our primary competitor in this space is Orbital Sciences Corporation, which, based in Virginia, has closer ties to the US defense apparatus. While we are the market leader in commercial satellite launches, Orbital currently has more defense contracts with the US government.
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Launch Projects for National-‐level Space Agencies Currently, we provide launch services for NASA and the space agencies of traditional US allies. This is because these types of sales can have distinctive geopolitical ramifications, and SpaceX has not typically been in a position to have its interests represented on the same level than the interests of official space agencies. However, the fact that we own and operate our own commercial space station and conduct groundbreaking proprietary research has given us a significant amount of leverage. In particular, we possess the advantage in negotiating with nations that lack the monetary or political capital necessary to construct their own space station modules. This branch is most directly related to SpaceX’s core mission, but it’s also the branch most sensitive to national politics on Earth. Out of the major spacefaring nations, the only ones we do not currently provide launch services to are China and Russia. However, to compensate, we could choose to sell to several nations that have space agencies currently on the rise: these include the Brazilian Space Agency (BSA), the Indian Space Research Organisation (ISRO), and the East African Space Administration (EASA). The ISA and EASA in particular have risen surprisingly quickly in recent years. In India, this was due to a long, painful process of government reform that didn’t fix everything, but fixed enough to prevent the stifling of private industry. The East African Union, comprised of the former nations of Kenya, Tanzania, Uganda, Rwanda, Burundi, and Somalia (admitted in 2018 after the nation was finally fully stabilized) has also seen a boom in recent years due to its emergence as Africa’s innovation hotbed. As a company, we must choose which governments would be advantageous to sell to, taking into consideration the potential political ramifications resulting from these types of deals. 17
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Legal Issues in Space The first legal framework regarding space was the Committee on the Peaceful Uses of Outer Space (COPUOS), founded in 1959. COPUOS is still in place today, and all nations with a space program are members. So far, COPUOS has ratified 5 treaties that attempt to govern outer space. An overview of these treaties and major provisions can be found below: Outer Space Treaty: Prohibits the placement of nuclear weapons in orbit or on the moon or other celestial bodies. The moon and other celestial bodies (including Mars) must also be peacefully used (cannot put military bases or conduct military operations around them). However, there is no language barring the placement of conventional weapons in orbit. Further, all exploration is to be for “mankind”— one cannot claim land for oneself. Finally, countries that suspect other countries of non-‐ peaceful space-‐based actions may request consultancy. Rescue Treaty: Requires the rescue of astronauts and aircrafts in distress, regardless of nationality. Space Liability Convention: As long as a space object (satellite, space shuttle, etc.) is launched from within the borders of one State, that State assumes all responsibilities for damages incurred by that object (i.e. satellite crashes down in another country, etc.) Registration Convention: All space objects must be reported on in detail with the UN before launch to orbit. Moon Treaty: Proclaims that the Moon should be governed by international law (notably the UN Charter), and prevents the creation of military bases on the moon, etc. However, most nations that have had or are planning to have manned missions to the moon (USA, Russia, China, India, Japan, EU countries) have not ratified this treaty. In addition, the 1998 International Space Station Agreement set up the means for criminal prosecution and the protection of intellectual property on the ISS, and gave each member agency jurisdiction over its own module. Despite the ISS’s decommissioning in 2020, the Agreement is expected to serve as a framework for future international cooperation on the Moon and Mars. However, like the other existing legal frameworks regarding space, it does not 18
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contain stipulations for private companies. SpaceX and other private organizations are attempting to lobby the UN to receive representation in the body as a nonvoting member, but efforts to do so have thus far been stonewalled. Having a seat at the table would allow SpaceX to help shape the creation and evolution of space law on terms we believe to be favorable. Importance of Property Rights Out of the above treaties, the most important one that actually governs activities in space the most is the Outer Space Treaty. Attempts to revise the language have failed multiple times, and some of the wording can be vague. For example, clause D contains extremely broad language that could potentially be exploited. However, there are potential issues with all of the treaties. For example, the language of the Space Liability Convention indicates that the US government would actually be responsible for any damages caused by a SpaceX craft. Furthermore, the Outer Space Treaty does not apply to private non-‐state actors, meaning that there is very little that would currently stop a company like SpaceX from claiming part of the Moon as its own private territory. Needless to say, the US government, as well as other governments with many aerospace companies, is not thrilled by these prospects. These could be used as bargaining chips in trying to obtain member status in COPUOS. Regardless of whether we actually get a seat at the negotiating table, we must remain cognizant of any changes or revisions to the legal frameworks that govern outer space. Thus far, SpaceX has avoided expanding our lunar presence in part due to little guarantee of property rights on the moon. If such a framework were agreed upon, it could benefit our operations greatly. 19
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Research Although it doesn’t regularly capture the headlines in the lulls between major technological breakthroughs, SpaceX’s research department is widely regarded as world-‐class. Getting hired by SpaceX Research would be a dream come true for those with STEM doctorates that do not wish to pursue a career in academia. At SpaceX, a continual emphasis on the power of research has enabled many significant breakthroughs, such as the development of the reusable Falcon G rocket and the Arkyd 400 asteroid mining spacecraft. Furthermore, the department’s research on topics such as artificial gravity, human hibernation, and propulsion technology plays a critical role in striving towards our core mission of enabling human habitation beyond Earth. Currently, our biggest competitor in providing thought leadership is the Chinese National Space Agency, which gets an entire space station – the Tiangong – to use for research purposes. Balancing the needs of all departments will be a difficult task, but is necessary to ensure SpaceX’s longevity.
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Company Information and Decision-Making Guidelines At SpaceX, we select our executive leaders based on years of proven experience and merit. Therefore, we entrust our leaders with great responsibility. At the same time, we believe that the entire leadership’s opinions are critical to making informed judgments. Therefore, for important decisions, such as signing a major new sales contract, breaking a major existing contract, or taking the company public through an IPO, 2/3 of executives must vote in favor for the decision to be implemented. Furthermore, executives should also remain cognizant of the fact that SpaceX does not have an unlimited budget. At the start of each meeting, executives will have 100% of the annual budget available to be used on various projects. Due to the nature of this industry, almost all decisions will have a significant impact on the company’s bottom line. Company Financials SpaceX 2037 Income Statement (approx.) $ 40,000 Asteroid Relocation & Mining $ 16,000 LS: Cargo & Personnel $ 14,000 LS: Satellites $ 10,000 Revenues
Other
$ 30,000 $ 16,500 $ 1,500 $ 9,000 $ 3,000
Net Income
$ 10,000
Expenses Operating Expenses Advertising & Promotion Research & Development
All figures in millions of USD
ARM: 46 tons of precious metals at $350 mil/metric ton
100% 40% 35% 25% 100% 55% 5%
LSCP: 43 launches per year at $300 million avg. per launch LSCP: 7 modules (5 on station, 2 on moon) -‐ $1 billion, each new contract brings in $180 mil/year LSS: $100 million/satellite launch/de-‐orbit, avg. 100 per year
30% 10%
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Sales Breakdown
Geographic Distributon of Sales Korea 15%
EU 15% Russia 3%
Japan 20%
EAU 2%
Brazil 2%
Other 7%
India 3%
USA 40% USA
Japan
Korea
EU
Russia
India
Brazil
EAU
Leased Modules, SpaceX Staton & Lunar Base (Natons w/ 2 have 1 on Staton and Lunar Base each) (Natons with 1 have 1 on Staton only) Vacant (Lunar), 2
SpaceX (company use), 4
Vacant (Staton), 3 USA, 2
Russia, 1 EU, 1
Korea, 1
Japan, 2
SpaceX (company use) USA
Japan
Korea
EU
Russia
Vacant (Staton)
Vacant (Lunar)
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World’s Busiest Rocket & Satellite Launch Sites Owner
Site Name
Location
SpaceX
Nikola Tesla Launch Center
Brownsville, Texas, USA
USA
Cape Canaveral Air Force Station
Cape Canaveral, Florida, USA
USA
Vandenberg Air Force Base
Lompoc, California, USA
USA
Kennedy Space Center
Merritt Island, Florida, USA
China
Wenchang Satellite Launch Center Wenchang, Hainan, China
China
Jinyuan Satellite Launch Center
Ejin, Alxa, Inner Mongolia, China
China
Taiyuan Satellite Launch Center
Kelan County, Xinzhou, Shanxi, China
Japan
Tanegashima Space Center
Tanegashima, Kagoshima, Japan
Japan
Uchinoura Space Center
Kimotsuki, Kagoshima, Japan
Korea
Naro Space Center
Goheung, Jeollanam-‐do, Korea
Korea
Sohae Satellite Launching Station
Cholsan, Pyonganbuk-‐do, Korea
EU
Guiana Space Centre
Kourou, French Guiana, France, EU
Russia
Vostochny Cosmodrome
Uglegorsk, Amur Oblast, Russia
India
Satish Dhawan Space Centre
Sriharikota, Andhra Pradesh, India
Brazil
Alcântara Launch Center
Alcântara, Maranhão, Brazil
EAU
Malindi Space Centre
Malindi, Kenya, EAU
Note 1: SpaceX leases launch facilities at each one of the above launch sites except for the Chinese launch sites and the Nikola Tesla Launch Center. Note 2: These are not the only launch sites available to most of these nations, but instead represent a selection of the world’s most important launch sites.
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UNCMUNC 2014: SpaceX 2038
Executive Leadership
Chief Financial Officer The CFO is responsible for processing and managing the firm’s financial statements. Has input over the budget. Also responsible for managing SpaceX Ventures, SpaceX’s venture capital fund focused on seeking out profitable investments for the firm. The stewardship of the CFO is key to the day-‐to-‐day running of the company and makes the development of expensive but profitable new technologies possible. Director of Asteroid Relocation and Mining (ARM) Responsible for all operations related to SpaceX’s asteroid mining division. This includes overseeing the manufacturing of Arkyd spacecraft, transportation to launch sites, and operation while in outer space. The current director of ARM was the leader of the team that spearheaded the effort to acquire Planetary Resources. Currently, the Director’s focus is on maintaining and advancing the technology behind the company’s Arkyd spacecraft. The sale of platinum group and rare earth metals is an important revenue source for SpaceX, and seeking out new prospects to mine is central to the company’s financial future, as well as making the long-‐term goal of human space colonization an economical proposition. Director of Launch Services: Cargo & Personnel (LSCP) The LSCP is responsible for improving the Falcon G rocket, the Falcon G Heavy rocket as well as the Dragon spacecraft. Also, responsible for the technology behind both SpaceX Station and SpaceX Lunar Base. Sending humans into space on the behalf of governments is both a mainstay of SpaceX’s business and a major public relations opportunity, linking the company with scientific progress and collaboration with the law. The director of LSCP is in charge of making sure human beings can travel to and from outer space seamlessly, preserving our relationships with governments and the revenue that they bring. Director of Launch Services: Satellites (LSS) Responsible for the technology behind the satellites SpaceX builds and launches at the behest of both commercial satellite content providers and military institutions. As one of the cornerstones of the modern information society, corporate and governmental satellite networks have become highly developed and are growing all the time. Naturally, this means provides an opportunity for massive profits to whatever company can secure the contracts for satellite launches. SpaceX is a major player in this market, and the director of LSS makes sure that this endures, ensuring that satellites reach orbit successfully and thus attracting customers with a reputation for quality service. Director of Planetary Habitation Research (PHR) Responsible for conducting groundbreaking research on topics such as artificial gravity and 24
UNCMUNC 2014: SpaceX 2038
sustainable living beyond Earth. SpaceX is widely regarded as a thought leader in humanity’s eventual effort to branch out into the rest of the solar system, and our R&D efforts play a critical role in accomplishing this. Pioneering the colonization of outer space was, and remains, Elon Musk’s primary reason for founding and leading SpaceX. Director of Travel Technology Research Responsible for conducting research in areas such as human hibernation/suspended animation and experimental interplanetary propulsion systems to make milestones such as the eventual colonization of Mars possible. In the vastness of space, travel takes is lengthy, difficult, and dangerous. The director of travel technology research aims to mitigate against these problems and make space travel more practical. Successful research, in the long run, means a greater human presence across the solar system -‐-‐ and more lucrative opportunities for SpaceX. New technologies may also have positive spillover effects in the rest of the company, making space travel faster, cheaper, or safer for our clients -‐-‐ and that means more profit. External Liaison for the United States Responsible for arranging sales to NASA and private American firms. Since SpaceX’s founding, the United States has been SpaceX’s largest customer. Despite recent setbacks, most notably the AAC v. United States Supreme Court case, this continues to be SpaceX’s most important relationship, as NASA continues to award launch contracts to SpaceX and lease modules on both SpaceX Station and SpaceX Lunar Base. External Liaison for East Asia Responsible for pitching and arranging sales in the East Asian nations of Japan, Korea, and China. While Japan and Korea are both major SpaceX customers, SpaceX currently doesn't sell to China due to restrictions put in place in the 2010s from the Chinese Communist Party. Despite having what is indisputably one of the world's strongest space programs, China still lags behind in cost and efficiency, areas in which SpaceX excels at. Perhaps the most glaring difference is that China has yet to perfect reusable rocket technology, whereas SpaceX achieved this feat 15 years ago with the Falcon G. However, the Chinese have consistently shown a willingness to spend heavily on space, and SpaceX could potentially profit tremendously from selling to the CNSA, but only if it proves willing and able to overcome the many barriers to entering the Chinese market. External Liaison – Secondary Markets Responsible for arranging sales to governments and private firms in the "second tier" of space powers. These include the ESA and private EU companies, as well as the Russian FKA. Still arguably the world’s 3rd or 4th strongest space agency, the ESA retains close ties with NASA, with whom it works with on a number of projects. On the other hand, SpaceX does not have a long history of selling to the FKA, as Russia remains wary of allowing foreign influences into its space program, but recent advances in this relationship have resulted proven profitable for 25
UNCMUNC 2014: SpaceX 2038
both parties. External Liaison – Emerging Markets Responsible for arranging sales to governments and private firms in the "third tier" of rising space powers. These nations don't have a history of strong space programs, but they're all backed by strong economies and governments with a willingness to spend, and are ripe for expansion into space if they can be convinced of its benefits. The most prominent nations in this category are India, Brazil, and the East African Union. Director of Public Relations Responsible for managing SpaceX’s brand and image in the media and to the general public. Also responsible for gauging public interest in current and future SpaceX projects and missions. The Director of Public Relations is poised to provide valuable input on what new missions or products would be ideal undertakings. Ensuring public interest in space and good perception of SpaceX is a key way of protecting SpaceX’s lucrative relationships with the governments of the world. Director of IT Security Responsible for IT security of corporate networks. SpaceX has state-‐of-‐the-‐art security systems to protect sensitive company secrets from would-‐be cyberspace thieves, and the Director of Security is responsible for their upkeep. With governments wary of dependence on SpaceX and competitors looking to make a killing by stealing proprietary technology, this office is critical for maintaining SpaceX’s dominant position in the market. Director of Security Personnel Responsible for physical security of launch centers and offices. Digital infiltration is by no means the only threat to SpaceX’s intellectual property, and corporate spies have to be rooted out at all costs. In an industry that requires a high level of secrecy and quality control, sabotage could have disastrous consequences, from satellite crashes to rocket explosions. The Director of Security Personnel is in charge of preventing these disasters, finding infiltrators, and keeping SpaceX running safely and smoothly. Chief Counsel on Internal Affairs SpaceX’s chief legal advisor on all internal matters, in charge of arbitrating departmental disputes and other internal conflicts. SpaceX is a collaborative effort between a multitude of different groups, ranging from engineers to financiers, and the company’s competitive budget model, though it encourages efficiency, can also exacerbate the differences of interest that divide the company’s departments. It is the responsibility of the Chief Counsel on Internal Affairs to resolve these disputes and keep SpaceX operating as a cohesive entity working towards the goals of profit and an expanded human presence in space. 26
UNCMUNC 2014: SpaceX 2038
Chief Counsel on External Affairs SpaceX’s chief legal advisor on all external matters, e.g. the legality of M&A deals, and the laws behind property in space. As has often been remarked, space is a new frontier for humanity, and as in all frontiers the law is murky. The Chief Counsel on External Affairs has to make sure that SpaceX’s interests are represented in this uncertain environment, overcoming legal challenges to the company’s most crucial operations in space. Director of Corporate Strategy Responsible for managing SpaceX’s market positioning in relation to its competitors. SpaceX may have developed technically brilliant solutions to the problems of space travel, but it’s past achievements mean nothing if its competitors can outdo those successes. The director of corporate strategy analyzes the business environment as a whole, dissecting the latest rumors and reports to ensure that SpaceX can maintain its edge over its rivals. Director of Human Resources Manages hiring/firing decisions. Also responsible for setting up recruiting programs/internships/co-‐ops for SpaceX. SpaceX is only as good as the talent behind it, and ensuring the quality of that talent pool falls to the director of human resources. By scouting out and hiring the brightest minds on the job market, while eliminating unproductive workers, the HR director ensures that SpaceX can maintain its edge in technology and management into the foreseeable future. Annual Aerospace Convention President Responsible for managing the Annual Aerospace Convention. SpaceX holds an annual conference where the top businesses and engineers in the industry come together to network with each other, share the latest news and breakthroughs, and conduct business on the side. The conference offers an excellent opportunity for employee headhunting, deal-‐making, and idea exchange. In past years, the conference has spurred huge leaps forward in SpaceX’s fortunes. The Convention president’s job is to make sure it continues to do so in the future. 27
UNCMUNC 2014: SpaceX 2038
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UNCMUNC 2014: SpaceX 2038
