Based on the analysis of electromagnetic (EM) potential and electromagnetic field of 1D layer model, the interaction relationships of EM fields among air, sea water layer and undersea formation were established by using mode decomposition theory of EM field. Based on the presumed infinite sea water model and five-layer model, the EM field expressions of the TE and TM modes which were decomposed from the EM responses excited by the horizontal electric dipole (HED) source were derived. The variation laws of critical offset with the undersea floor conductivity and sea water depth. It is pointed out that the conventional recognition of former researchers of the boundary depth of 300 m between the deep sea water and shallow water has drawbacks.