US oil producer Chevron used the term “Gulf of America” instead of Gulf of Mexico in its fourth-quarter press release today, a sign of corporate America beginning to implement US President Donald Trump’s order to rename the ocean basin.
The name change was part of a flurry of executive orders Trump issued shortly after taking office this month.
Google Maps will change the name once it is officially updated in the US Geographic Names System, though it will only be visible in the US, Google said on Monday.
Mexican President Claudia Sheinbaum said yesterday that Google was wrong to change the name.
US oil company Hess and UK-based Shell both stuck with the name Gulf of Mexico in their fourth-quarter earnings releases. Exxon Mobil did not mention the gulf in its results materials today.
Meanwhile, Chevron today reported fourth-quarter earnings below Wall Street estimates as weak margins pushed its refining business into a loss for the first time since 2020, sending its shares down more than 2%.
Chevron CEO Mike Wirth told Reuters the downtrend in refining margins is set to continue this year.
The second-largest US oil producer posted total earnings of $3.24 billion for the three months ended December 31, up from $2.26 billion in the same period last year.
However, its adjusted earnings per share of $2.06 was below Wall Street’s $2.11 estimate, hit by weak fuel sales in the US.
Profit on fuel sales tumbled across the industry last year, as the post-pandemic demand surge faded and economic activity faltered in the US and China, the two largest oil consumers.
Chevron’s downstream business lost $248m in the fourth quarter of 2024, compared with a profit of $1.15 billion the same time a year ago.
Margins softened in both US and international markets, but weak jet fuel demand aggravated troubles for the Houston-headquartered company’s domestic business. US fuel sales fell 3% year-over-year, Chevron said.
Refining margins were unlikely to stay at the elevated levels seen coming out of the pandemic, CEO Wirth said in an interview.
“This trend we have seen of margins softening through 2024 is something you can expect to continue to see, to extend into 2025,” he said.
While refining struggled, Chevron’s oil production held relatively flat in the fourth quarter at 3.35 million barrels of oil equivalent per day (boepd), compared with 3.39 million bpd a year ago.
The company expects production growth of 6% through 2026 outside of its asset sales, it said in its conference call presentation, with growth weighted towards the second half of 2025 as its projects in Tengiz in Kazakhstan and the Gulf of Mexico come online.
Production from the Permian Basin of Texas and New Mexico, the top US oilfield, was within touching distance of a 1 million bpd target, Wirth said.
Chevron also said it expects to maintain its share buyback programme of $10 billion to $20 billion per year, and projected free cash flow at $5 billion in 2025 and $6 billion in 2026 if Brent holds at $70 a barrel.
