The Monterey Shale oil prospecttakes a big hit, but daily extraction rates jump.

Word on the streetis that the U.S. Energy Information Administration has reduced how much oil is expected to be technically recoverable from the Monterey Shale in southern Californiaby 96 percent. The new estimate drops the tally from 13.7 billion barrelsto 600 million barrels.

At the same time EIA estimates the formation to yield more oil per day. According to the new numbers, the Monterey Shale will produce 57,000 barrels per day between 2010 and 2040 versus 14,000 barrels per day under the old. (More on U.S. shale plays [pdf].)

Do you think that’s good news or bad news? Or are you too busy burning some oil on the way to your Memorial Day weekend?