3 Things Every Investor Needs to Know About NASA's Plan to Return to the Moon



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<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""I will tell you what is incredible. It cost $ 25 billion."" data-reactid = "11"> "I will tell you what is incredible. It cost $ 25 billion."

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "That was Sean Glaspie's take on Apollo worldwide televised 11 moon landing in season 7, episode 7 of AMC Mad Men. Although a historic and important event, it is undoubtedly the high cost of Apollo (nearly 175 billion dollars today in dollars) which finally condemned the program and forced the United States to return to Earth for half a century (and counting). "data-reactid =" 12 "> That was Sean Glaspie's take on the Apollo 11 satellite of season 7, episode 7 of AMC. Mad Men. Although a historic and important event, it is undoubtedly the high cost of Apollo (nearly 175 billion dollars today in dollars) which finally condemned the program and forced the United States to return to Earth for half a century (and counting).

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Almost 50 years later, NASA – America & # 39; s National Aeronautics and Space Administration – has budgeted $ 35 billion for Boeing (NYSE: BA) and Lockheed Martin (NYSE: LMT) build a new "space launch system" almost as powerful as the Saturn V rockets that took us to the moon. "data-reactid =" 13 "> Nearly 50 years later, NASA – the National Aeronautics and Space budgeted $ 35 billion to have Boeing (NYSE: BA) and Lockheed Martin (NYSE: LMT) build a new "space launch system" almost as powerful as the Saturn V rockets that brought us to the moon.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Is $ 35 billion a lot of money?" 39 "money" may not be in terms "Apollo", but it's still a decent sum.In addition, forecasts are beginning to emerge on the fact that the already exceeded SLS could cost up to 1 billion or even $ 2.5 billion per launch NASA budget for the 2019 fiscal year, that certainly East a lot of money. Congress is planning not to spend more than $ 1 billion on moon-related projects this year – but just one SLS launch will blow up the budget even before the rocket leaves its launch pad! Data-reactid = "14" Maybe not in the words "Apollo", but it's still a decent sum. In addition, forecasts are beginning to emerge on the fact that the already exceeded SLS could cost up to $ 1 billion, or even $ 2.5 billion per launch. in the context of NASA's congressional budget for fiscal 2019, that certainly East a lot of money. Congress is planning not to spend more than $ 1 billion on moon-related projects this year – but just one SLS launch will blow up the budget even before the rocket leaves its launch pad!

Unless NASA can make space travel cheaper, the costs of explosion could again jeopardize the lunar project.

Moon on a pastoral landscape at night

NASA has the moon in mind. Source of the image: Getty Images.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The high cost of taking a picture"data-reactid =" 28 ">The high cost of taking a picture

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "So, how make we reduced costs? Last month, at a meeting of NASA's Advisory Board at the Ames Research Center in Moffett Field, California, NASA's administrator, Jim Bridenstine, hinted that NASA's plan to "bring America back to the moon over the long term". As a potential clues to finding winners (and losers) in the space race, I think it's worth considering. "Data-reactid =" 29 "> So, how make we reduced costs? Last month, at a meeting of NASA's Advisory Board at the Ames Research Center in Moffett Field, California, NASA's administrator, Jim Bridenstine, hinted that NASA's plan to "bring America back to the moon over the long term". As a potential clues to finding winners (and losers) in the space race, I think it's worth considering.

Here is a quick overview of three highlights of Bridenstine's speech.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""Reusable" is the key to "sustainable""data-reactid =" 31 ">"Reusable" is the key to "sustainable"

Bridenstine dedicated the first 15 minutes of a 22-minute introductory presentation to President Trump's Space Policy Directive 1, which states that "the United States will lead the return of humans to the moon for exploration and use. long-term". and a sustainable exploration program with commercial and international partners. "And I think the two key words here are" commercial "- because NASA will rely heavily on commercial companies, which we can invest in some – and" sustainable. "

"The exploration and long-term use of the moon requires a reduction in costs so that NASA can maintain it over time. Fortunately, says Bridenstine, NASA can now claim "capabilities that did not exist five or ten years ago", such as "reusable rockets" that cost much less than consumable rockets. currently used in the world. world.

Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Currently, however, neither Boeing nor Lockheed Martin builds rockets capable of launching and landing for reuse, only SpaceX and Blue Origin do it (and for the moment, only SpaceX has a rocket of first in orbit and then land on Earth and be re-used.) "data-reactid =" 34 "> However, currently, neither Boeing nor Lockheed Martin are building rockets capable of launching and landing for re-use – only SpaceX and Blue Origin do it At the present time, only SpaceX has a first-stage rocket that can put a satellite in orbit then land on land and be reused.)

The inescapable conclusion: SpaceX (and possibly Blue Origin) will be an important part of NASA's efforts to return to the moon – and despite their role in the construction of SLS, Boeing and Lockheed will occupy a much less important place.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""Reusable" may not always mean what you think it means"data-reactid =" 40 ">"Reusable" may not always mean what you think it means

Mb (0) – smt Mt (0.8em) – sm "type =" text "content =" Boeing and Lockheed may not be cut entirely out of the loop, though. Indeed, for at least two years, the joint venture Boeing and Lockheed, United Launch Alliance, is working on a reuse plan, not on its first-phase launchers, but on its second-stage rockets. "=" 41 "> Boeing and Lockheed may not be cut entirely out of the loop, though. Indeed, for at least two years, the joint venture Boeing and Lockheed, United Launch Alliance, is working on a reuse plan, not on its first-phase launchers, but on its second-stage rockets, in orbit.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This joins Bridenstine's comment that" we want tugs reusable from the Earth's orbit to lunar orbit "and the ULA" ACES "program, in which spent fuel tubes that are second-stage rockets could be left in orbit, equipped with additional and transformed into orbital tugboats seem to fit well with this aspect of NASA's lunar development plans. Northrop Grummanand Maxar Technologies to build their own fleets of space tugs could also play a role in NASA's future projects. "data-reactid =" 42 "> This echoes Bridenstine's comment:" we want reusable tugboats going from orbit "and back.The" ACES "program of the ULA, in which used fuel tubes that are rockets of the second stage could be left in orbit, equipped with additional equipment and transformed into orbital tugs, plans for lunar development, similar plans by Orbital ATK (now part of Northrop Grummanand Maxar Technologies to build their own fleets of space tugs can also play a role in NASA's future plans.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Mining the moon"data-reactid =" 43 ">Mining the moon

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In addition to seeing the moon again, and exploring the moon Bridenstine says that we will also use the resources of the moon.This will include the exploitation of the moon to obtain water ice that can be used to drink water and liquid hydrogen and the liquid oxygen for rocket oil, which will probably include the extraction of lunar rocks for the production of raw materials in lunar habitats. could include resource extraction for use on Earth. "data-reactid =" 44 "> In addition to seeing the moon again and exploring the moon, Bridenstine says that we will also" use the resources of the moon ". include the moon's extraction for the ice water that can be used to drink water and broken down into oxygen to breathe and liquid hydrogen and liquid oxygen for rocket fuel. could include resource extraction for use on Earth.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" There could be billions of dollars platinum group Metals on the moon, opine Bridenstine. (Although we do not know until we return and do prospecting.) are "the rare earth metals that are extremely valuable" on the Moon, and those too could be an object of use of lunar resources. "data-reactid =" 45 ">" There could be billions of dollars of platinum group metals "on the moon, opine Bridenstine (although we do not know it until we go back and do some prospecting work). are "The rare earth metals that are extremely valuable" on the Moon, and those too could be an object of use of lunar resources.

This suggests that future investment opportunities could arise if and when private companies such as Moon Express and Planetary Resources (both of which have shown interest in space mining) have IPOs.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "And one more thing"data-reactid =" 47 ">And one more thing

One last observation that Bridenstine made, it is particularly important to keep in mind: "We want interoperability" among the different kinds of rockets used to travel to the moon, between the space stations located on the lunar surface and in orbit. , among the lunar landers and lunar shuttles.

In order for NASA to take full advantage of multiple commercial space companies competing for its business, it is essential that the agency is not a victim of "vendor blocking", where a company's products are not suitable to others. This is why NASA will want to make sure that everything it buys from a supplier will be able to communicate, dock and interact with the hardware and software of other vendors.

Making the moon affordable, it's a collective effort, and there's plenty of room for all kinds of businesses – and investors in them – to take advantage of it.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = " More fool "data-reactid =" 51 "> More fool

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "Rich Smith has no position in the mentioned actions. The Motley Fool has no position in the stocks mentioned. Motley Fool has a disclosure policy."data-reactid =" 59 ">Rich Smith has no position in the mentioned actions. The Motley Fool has no position in the stocks mentioned. Motley Fool has a disclosure policy.

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