Asbestos pad in wall?
"Kreed", I suppose anything could contain asbestos, and the only way to tell would be to have it or a sample tested. That certainly looks like "random pattern felt" though. I'm not real sure if I have the name exact, but I do remember something like that. We used to use something that looked very much like that at work for heat insulation. It came in various base colors with mixed colored strands woven into it. I always thought it was made from some type of scrap material. The material we bought was placed in between surfaces which were very warm (not too hot) and surfaces we didn't want the heat to transfer to in a temporary situation until we developed a permanent situation. Some of those "temp" applications were still on the equipment for twenty years or so. I don't remember ever using ours in an electrical application, even though you state it was between electrical conduit and drywall. Maybe it was just that, a padding to prevent the conduit from rattling against the drywall. And--thanks for the picture, they are valuable on this site. David