Yeah, it's steam. I just tried this. At first, I was viewing it in fire view and it looked normal, but then I cycled through the views and, when I reached blob view, Voila!, magic, glowing, blue, ring-dot things! It's definitely steam, without even a Heisenburg doubt. It just seems to be the case that he's viewing it in blob view. Very cool look, though.

EDIT: Wow! O.O Steam is soooo pretty in blob view!
Looks almost like glowing, blue bubbles. O.O