Corrected entry: Bennett has just been pierced by the pipe going into a steam compressor or whatever that is behind him. When the camera draws back along the pipe to reveal the steam pouring out, look closely and it looks like CO2 from a fire extinguisher. The edge of the pipe with the "steam" coming out of it has frost on it. (01:24:10)
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Correction: How do you know the pipe was carrying steam? It could conceivably have been a pipe carrying a cryogenic fluid (liquid nitrogen lines are common in industrial plants).
Oscar Bravo
If it's not supposed to be steam then that makes the line "Let off some steam, Bennett" make absolutely no sense. It's obviously supposed to be steam.
BaconIsMyBFF
Matrix might not know it isn't steam. Even so, that's a character mistake, not a movie mistake.
Yes, because "Let off some CO2, Bennett" sounds much better. It's a bad pun, simple as that.