This question is motivated by several "myths" I have heard recently - I want to know if there is a problem with using a compass inside a submarine. I can see two different issues, so I'm wondering if anyone can clarify (if you do some googling on this issue, you will see all answers from "yes" to "no", most of which include very suspicious physics).
1) Does the submarine somehow "shield" the magnetic field of the Earth? Well, it seems obvious that a submarine is not a Faraday cage, but it is a giant hunk of metal so there could in principle be an issue. I guess they are generally made of something like steel, so it would magnetize (weakly), but the magnetization should match the field of the Earth so the compass should still read true, right?
2) Electrical activity in the submarine can produce magnetic fields larger than the Earth. This is likely true - on this site you can see that non-nuclear submarines used batteries capabible of producing currents around 15,000 A (of course this site called that the "power" of the battery, so maybe it's not a good reference). Anyway, a current of 15,000 A would match the field of the Earth (assuming 0.5 G) at a distance
$$B=\frac{\mu_0 I}{2 \pi r}\rightarrow r\sim 60 m$$
In any case, this seems like a pretty reasonable argument - maybe it does not apply to the nuclear case however.
Anyone have any ideas?
COMMENT: Is there a tag for this kind of question? Something about using basic physics to "mythbust"?