Google announced their new URL shortening service, goo.gl. This URL shortening service is available within the Google toolbar and within Feedburner. You will need to download the latest Google toolbar to get the Share feature. Currently the goo.gl URL shortener is not a standalone service from Google. So you can't use it to shorten URLs without going through the Google toolbar or through Feedburner.
A new feature for Feedburner is to use the new goo.gl URL shortening service to automatically post your latest blog entries to your Twitter account. This feature acts similarly to TwitterFeed, but is much more reliable. ProBlogger has a nice overview of this new Feedburner feature.
There has been speculation on how this will affect the most popular URL shortener, bit.ly. Some think that Google will release this as a standalone service (and they sort of mentioned it in the original blog post that this could happen) with enhanced tracking features. I for one would like to see a seamless integration with Google Analytics.
Now let me put on the tin foil hat. I think Google may struggle a bit with this service. Google is trying to capture user data from too many points and many people may feel that Google is the next Minoirty Report. I for one will not be jumping ship from bit.ly to goo.gl for my URL shortening services.