When geoid heights are subtracted from sea surface heights obtained from satellite radar altimetry, the resulting residual heights should measure the exact oceanographic signal which is due to the dynamic processes present. Unfortunately, these results still contain unknown biases due to errors in the determination of the orbits and in the referenced geoidal surfaces. The GEOS‐3 radar altimeter data in the western North Atlantic Ocean area, referenced to two different gravimetric geoids, are used here for this GEOS‐3 Gulf Stream project. Results point out that the orbital errors are not important in the process of extracting the short wavelength oceanic phenomena. Results also indicate that the GEOS‐3 data can be used to correct short wavelength anomalies in gravimetric geoids. These corrections are necessary if sea surface topographies are to be produced.