Dear Ron,

Thanks for the question.  

The fullness of orders lies with the bishop, and he alone has authority to do all things apostolic pertaining to the priestly ministry. So, he delegates to the priest particular powers and tasks, which includes the two particular functions of penance and the Eucharist.  

The blessing of holy water is also included because it has such a broad application with respect to the blessing of items and persons.

Oil, on the other hand, is associated with ordination, vocation, anointing and commissioning.

These tasks are reserved to the Bishop because He rightly holds the office of successor to the Apostles. He anoints others for their priestly ministry.  That includes you, and me, and every Christian who share (in some way) in Christ’s priesthood (inasmuch as we make a sacrifice of our lives.) (cf. Romans 12)  

So, we are all commissioned and anointed at Baptism to be a priest, prophet, and king — which is why we rely on oil blessed by the bishop, who connects us to the Apostles and hence to Christ’s Great Commission. (cf. Matthew 28:18)

Peace,