Essay 2: Sources for Success

Space Exploration: The Role of Private Space Companies

Saagar Patel

Oklahoma State University

            Space travel and exploration is at a point, today, where it is either going to slow down or thrive greatly. The commercialization of spaceflight is currently going on today with hopes of doing some of the work NASA is not currently capable of doing. Since NASA relies so heavily on the U.S. budget proposed each year, long term projects and investments are difficult. Private space companies, on the other hand, are funded by extremely wealthy people who truly have a passion for space travel and exploration.  NASA will obviously continue to excel and make progress in the space industry, but may see a different role now with the rise of the private space industry. The private space industries will do many of the services for NASA for a lot cheaper, and therefore NASA can focus on more large-scale, futuristic projects. With the private space industry being so proactive, NASA can play a more conservative role in the space industry almost acting as an oversight committee for these private space companies.

            There was a great amount of research conducted to understand and identify what private space companies have done, what they are planning to do, and how their role is foreseen in the overall space community. The majority of the sources discuss the optimistic goals of many specific private space companies. All of the sources are highly credible and most of them were found using the Oklahoma State University online database for articles and journals.

Burgan, M. (2012, July 22). Their view: Private space exploration a long and thriving tradition. Las Cruces Sun-News. Retrieved from www.lcsun-news.com

“Their View: Private Space Exploration a Long and Thriving Tradition” is a newspaper article written by Michael Burgan for the Las Cruces Sun News. The article primarily compares what a few innovators in the private space industry are doing today to people in the past and what they did in the aerospace industry. The author claims that the investors Elon Musk of SpaceX, Richard Branson of Virgin Galactic, and Paul Allen of Stratolaunch are following in the footsteps and are part of the tradition of wealthy people with efforts to advance the space and aeronautics industry. The author uses small examples specifically of Charles Tyson Yerkes, a robber baron, donating $300000 to the University of Chicago to build an observatory and of James Lick, who was the richest man in California at time, leaving much of his fortune to the University of California in 1876 to build an observatory containing the world’s most powerful telescope. The author states “philanthropists from Andrew Carnegie to John D. Rockefeller helped fund ever more elaborate technology for scanning the cosmos” (Burgan, 2012). By him stating this, it shows that space exploration was truly a passion and concern for many wealthy people in the past and they did a lot to advance study in this field. The author further asserts that the Guggenheim family was perhaps the biggest private contributor to the space industry in the past. Guggenheim’s passion for space and money, of course, was the primary resource for Robert Goddard’s development of the rocket. Goddard’s experiments and trials in efforts to develop the first true rocket were all funded and backed by the Guggenheim family. It can truly be said that the Guggenheim family were one of the main reasons for the Rocket Age. Overall, this article shows that the passion for space exploration by wealthy entrepreneurs has always been there and has seen success so it is likely to see success again today.

Diamandis, P. (2010, February 10). Space: The final frontier of profit. The Wall Street Journal. Retrieved from http://online.wsj.com

In “Space: The Final Frontier of Profit,” a Wall Street Journal article written by Peter Diamandis, the author argues that the existence of private space industry will be one of success due to its affordability and drive compared to government agencies. The author claims that private space companies will be the forefront in space exploration. There are two fundamental ideas that the author bases his argument. The first idea the author states is that now "private capital is seeing space as a good investment, willing to fund individuals who are passionate about exploring space, for adventure as well as profit" (Diamandis, 2010). Companies are now willing to invest in such endeavors as many investors are seeing the potential for return. It is no longer only affordable for large government entities. The author's second fundamental idea is that "companies and investors are realizing that everything we hold of value—metals, minerals, energy and real estate—are in near-infinite quantities in space" (Diamandis, 2010). There is a great amount of resources out there just waiting to be discovered and many companies want to do just that. One example the author uses as an analogy is the idea that Alaska was once seen as a wasteland, but now has a billion dollar economy. With private space companies having so many young, passionate employees, the will and drive is there to take on such a task. The author envisions the government to play the role of the "big customer" in the near future. Government will ask of the private companies for certain tasks to be accomplished. This will create competition between the different private space companies, ultimately advancing space innovation. The author concludes by asserting that a future where government only controls space ventures will not be sufficient to truly reach the final frontier. 

Doherty, B. (2012). Space on earth. Reason, 43(9), 60-61. Retrieved from Proquest database

In “Space on Earth,” an article written by Brian Doherty in the publication Reason, the author writes and discusses about his visit to the Mojave Spaceport where he is a guest of private space company XCOR. XCOR is a 30- employee company developed for space transport and space exploration. XCOR has already built two successful rocket- powered airplanes. Over a thousand launches have been done without any major injury to the aircrafts so XCOR boasts its vehicle’s durability. Their current, main concern is to build and fly the Lynx “a suborbital vehicle to take tourists, experiments, and small satellite payloads out of this world” (Doherty, 2012). The Lynx will be a vehicle they could use for tourism, which will bring in revenue, and experiments will advance the scientific knowledge of the space community. In his talk with a representative of XCOR, the author learns that companies such as XCOR are not just normal companies that lure your “average” American. Those who work for these companies are space enthusiasts and are doing this for more than the pay. Having only 30 employees, XCOR must be a very competitive company to work for. The author is also told that if the company turns into a profitable business, there will be more hype and therefore will lure more people to work in such an industry. The author concludes by asserting that the small town of Mojave dreams of great innovation and whether it is the profit or the pure love of space, more people will join in such endeavors to advance the space community.

Figueroa, J. (2013, January 11). Panel: Private space exploration could make it easier to reach for the stars. Pasadena Star-News. Retrieved from www.pasadenastarnews.com

The article “Private Space Exploration Could Make it Easier to Reach for the Stars,” authored by James Figueroa, discusses the views of a few panelists at a Caltech lecture concerned with the impact of space commercialization. The author acts primarily as just a narrator of the major conversations the panelists had. The author quotes the panelists continuously throughout the article. The topic primarily discussed between the panelists is the affordability of sending payloads into space or the idea of space tourism. One of the panelists discusses that this industry is different from other technology industries where you see products become better as the parts become cheaper. Sending a payload into space has not gone down in price, but he believes there is no reason it should be like that. There are views from other panelists, however, that affordability of such ambitious projects will just not occur any time soon and it is better to invest in ground based space technologies such as telescopes. Along with the cost of these projects, the safety of the passengers going into space is another major topic discussed. The author notes that one panelist “commented that NASA's record of two losses in 135 crashes is hardly ideal, but [other panelists] defended the space shuttle program” (Figueroa, 2013).

With the tragedies faced in the recent past with the space shuttle, many are pessimistic about the idea of a private space company doing the same task- believing the risk is even higher when not in the hands of the government. The same panelist also asserts that the Space Shuttle Program and the Apollo Program were very ambitious, but truly did not work to the extent expected and now the space industry finds itself in another experiment with the private space companies ambitions.  Overall, this article is helpful as it displays a view that is against the commercialization of space travel.

Haak, E. (2012). Space, the private frontier. Fast Company, (162), 15-15. Retrieved from Proquest database

In “Space, The Private Frontier,” an article written by Emma Haak published in Fast Company, the author discusses the plans of a few private space firms with intents of leading the way in space exploration. This article is similar to the “The New Space Race” found in Science Illustrated as it specifically lists a particular company and discusses their current major goal. Virgin Galactic is the company first mentioned. The author notes that their goal is to make a trip to space a tourist attraction. Their CEO says they would like for people all over to see the things so far only a handful of people have seen. The author discusses the plans of SpaceX, which most of these other articles already have. SpaceX truly is at the forerunner in private space industry and their success will pave the way for many others. Boeing is planning on building a spacecraft by the year 2015 to carry astronauts to the International Space Station. Haak quotes the VP of Boeing stating "’it would be unfortunate to cede leadership to others, then look longingly at their accomplishments’" (Haak, 2012).  Ultimately, the United States will work together to be the leader in space travel. At the end of the day, space exploration is seen as a national feat and these private companies do not want other countries to accomplish great feats first. XCOR is mentioned discussing their plans regarding the Lynx vehicle, which was discussed in the article “Space on Earth.” Overall, this article states what many of the other articles have by listing the primary goals of each company, but the insight of the leaders of these companies makes this article useful.

Luthra, S. (2012, August 10). Going private, space industry eyes state's open spaces: [national desk]. The New York Times. Retrieved from Proquest database

In The New York Times article “Going Private, Space Industry Eyes State’s Open Spaces: [National Desk]”, the author, Shefali Luthra discusses the effects and goals of a particular space companies efforts to build a launchpad site in Texas. The author asserts that much of the appeal that private space companies see in relocating to Texas is due to the history behind NASA’s mission control in Houston and the fact that NASA is facing budget cuts currently. The main issue private space companies face in order to receive financial incentives is the uncertainty of job creations in the area. Gilberto Salinas, the executive vice president of the Brownsville Economic Development Council asserts that the development of the SpaceX would inject around $50 million dollars in annual salaries into the city’s economy.  This implies that there are economic benefits for the area inviting the company. According to the author, “Gov. Rick Perry has expressed interest in promoting the private space industry in Texas and has met with Elon Musk, the chief executive of SpaceX, many times” (Luthra 2012). This implies that there is some hope and a vision in the governor’s eyes that there will be many advantages of allowing the private space companies to relocate to Texas. Another major issue space companies are facing involves the concern of local environmentalist who are “petitioning for Space to abandon its Brownsville plans” as the area they are attempting to build upon is home to rare species (Luthra 2012). Mr. Salinas countered, “SpaceX had a history of complying with environmental regulations and said he believed the company would protect species in the park” (Luthra 2012). Other than this small issue, Texas seems hopeful and inviting of private space companies.  The author ends by asserting that many states are attempting to attract private space companies also as it has a chance to truly boost local economy.

McKelvey, S. (2012). (Still) getting off the ground. Reason, 43(9), 14-14. Retrieved from Proquest Database

In “(Still) Getting Off the Ground,” by Seth McKelvey, the author discusses what role the private sector sill play in space flight. The author starts the article by quoting an earlier article from the same publication Reason written by James C. Bennett. “Bennett imagined a future government finally ending the Space Shuttle program in order to focus on larger issues like "unemployment problems" (McKelvey, 2012). Bennett’s prediction came true in 2011 when the Space Shuttle program was retired. The author also states that if the Space Shuttle program had ended in Reagan’s administration, the private space industry would have been enormous and that space travel would be "’an everyday occurrence’ by the year 2000, with competition encouraging innovation and pulling prices back down to Earth” (McKelvey, 2012). This is the time Americans are in now. Private space companies have emerged to take on the tasks NASA currently cannot do. After the final space shuttle flight in 2011, NASA paid a private space company, Virgin Galactic, $4.5 million to buy cargo space and seats on their suborbital vehicle for three flights. This price is “less than 1 percent of the cost of a single Shuttle launch” (McKelvey, 2012). With private space companies able to get the same task accomplished for such a discounted price, NASA has no choice but to be a customer of these private space companies. Ultimately, according to the author, the role of NASA has changed from the “sole producer and consumer of space transportation to merely one consumer of several” but will continue to act as the gatekeeper (McKelvey, 2012). The author concludes by stating that private space companies have always been in NASA’s shadow due to the space shuttle, but now they have a chance to truly shine.

Redd, N. (2013, January 22). Scientists see big rewards (and risk) in private spaceflight. Retrieved from www.space.com

In “Scientists See Big Rewards (and Risk) in Private Spaceflight,” an online article written by Nola Redd for SPACE.com, the views private space companies’ goals and missions are discussed in comparison to the traditional views of NASA spaceflight. The author first notes that the private space industry is still a growing industry. Virgin Galactic does not even plan to develop new technologies, but rather build upon successful existing technologies. The author then discusses risk associated with the private space industry. The author strongly states, “failure comes in two types — the loss of scientific opportunities and the loss of human life” (Redd, 2013). The loss of scientific opportunities can refer to losing resources and money into unsuccessful projects which is something that a few of these wealthy investors can afford to risk. The loss of human life is an issue that nobody can afford, but to advance the scientific community, the risk must be taken. John Grunsfeld, NASA's associate administrator for science and a former space shuttle astronaut, is quoted saying that “’the private sector is free to take those risks,’…pointing out that it doesn’t have to deal with government bureaucracy” (Redd, 2013). This is an advantage private space companies have over NASA. Also, since taxpayers are not funding private space companies as they are NASA, private space companies do not face as much criticism or scrutiny. The first manned flight will truly determine the success, or even existence, of privatized spaceflight. A failed mission due to poor planning or preparation is unacceptable, and the public will not respond in a positive manner. If a company fails “because [they] pushed to the frontier,” the public’s reaction cannot be predicted. Overall, the private space industry is one that fits the idea of high risk, high reward product.

Star truck; private space flight. (2012, May 05). The Economist, 403(8783), 14-14. Retrieved from Proquest database

In “Star Truck; Private Space Flight,” an article in The Economist newspaper, the author discusses how he or she foresees the business that will be done by upcoming private space companies. The author first states that a group of rich Americans have already announced that they plan to mine asteroids for precious materials. The author ultimately claims that this venture is not worth it due to the cost. On a more optimistic note, SpaceX, having launched their Dragon capsule to the International Space Station is discussed. The Dragon capsule transferred cargo from Earth to the International Space Station recently and the author views this as a viable business. The author states that private space companies can build vehicles to carry cargo from Earth to the International Space Station; that “acting as [the International Space Station’s grocery van is a valid business” (Star truck; private space flight, 2012). The author also asserts that the vehicles designed by SpaceX are ultimately intended for humans to go into space. With the recent retirement of the space shuttle program by NASA, NASA will want American vehicles to get American astronauts into space and therefore “SpaceX will be handsomely rewarded” (Star truck; private space flight, 2012). SpaceX will essentially sell its product to NASA so NASA can continue sending astronauts into space. The author also discusses the possibility of manned space tourist flights. The author claims it is too early to tell whether it will be viable, but if the demand is ever present, companies such as SpaceX are equipped to take advantage. The author concludes by stating that Elon Musk, the founder of SpaceX, is still a ways away from his dream of a Martian retirement.

The new space race. (2013, Science Illustrated, 6(1), 32-39. Retrieved from Proquest database

“The New Space Race,” an article featured in Science Illustrated, presents in detail many of the feats in space travel and exploration wished to be accomplished by many visionary billionaires. The article has sidebars, which lists a new horizon to be explored with details on the background. One of the first horizons to be explored is shuttling astronauts, which is the dream of SpaceX founder Elon Musk. His goal is to carry astronauts and cargo on SpaceX rockets to the International Space Station and beyond. Another task is to build a space station. This is the goal of Robert Bigelow of Bigelow Aerospace Company. He wishes to “build residential modules and space bases for tourists, scientists and mining operations” (The new space race, 2013). A private space station will draw in a lot of customers, and ultimately revenue. Another horizon to be explored is to mine on asteroids. This is one of the primary goals of Larry Page who is one of the primary investors behind Planetary Resources. The goal is to use a robotic space vehicle to mine the asteroids for precious materials and useful resources to bring back to Earth. The article poses many strong arguments why mining on asteroids should be done such as the high return in profit and the great amount of minable asteroids. The article goes into much detail on how each of these feats can be accomplished and the current status of them all. The author asserts that even though it seems as if SpaceX is the main and only player in the private space industry, there are many others contributing to the rising market.

Trejos, N. (2012, August 14). A new space race; private companies dive into space transportation. USA Today. Retrieved from www.usatoday.com

In the USA Today article, “A new space race; Private companies dive into space transportation”, written by Nancy Trejos, the author conveys the goals of many private space companies and how they may be an advantage to full government control of space exploration. The author states that due to the fluctuating budget NASA receives each year, advancements in space exploration cannot solely rely on government alone. This is where private space organizations come into play. With the government letting many private space companies do much of the near- orbit work that NASA used to do, competition between the private companies results. All the private space companies will be competing with each other. The author quotes the president of the space policy consulting firm PoliSpace James Muncy asserting that “We're making space more American. We're making space more democratic. We're making space more available, approachable and real to the average American” regarding the rise of all the private space companies (Trejos 2012). With more than just the government dealing with space transportation, it as an open market that characterizes American businesses. The author then proceeds to discuss a few example companies and why they are investing with such high hopes for big return. The author truly implies that the rise of the private space companies is the beginning to a major surge in space exploration.  This article is helpful as it clearly shows the author’s view on the role of private space companies compared to the government’s role on space travel.