In the Epistle of James, we read: “Is any sick among you? let him call for the elders of the church; and let them pray over him, anointing him with oil in the name of the Lord” (James 5:14). In The Church of Jesus Christ of Latter-day Saints, we use pure olive oil to anoint and bless the sick. This function is performed by males who hold the Melchizedek Priesthood.

The oil that is used in the anointing must have been consecrated at some point prior to the time of the blessing. To consecrate means “to declare sacred.”  The LDS Church website (www.lds.org) gives the following instructions for consecrating oil:

One or more Melchizedek Priesthood holders may consecrate pure olive oil and set it apart for the purpose of anointing the sick. No other oil may be used.

To consecrate oil, a priesthood bearer:

  1. Holds an open container of olive oil.
  2. Addresses our Heavenly Father.
  3. States that the ordinance is performed by the authority of the Melchizedek Priesthood.
  4. Consecrates the oil for the blessing and anointing of the sick.
  5. Closes in the name of Jesus Christ.

After oil is consecrated, it can be used at any point in the future for the anointing and blessing of the sick.  Administering to the sick is also performed by Melchizedek Priesthood holders. Usually two bearers of the Melchizedek priesthood perform the ordinance. One will anoint the head of the sick person with the consecrated oil. The other will then seal the anointing and give a blessing. Again, the LDS Church website contains instructions on how this is done.

Anointing:

  1. Puts a small amount of oil on the person’s head.
  2. Places his hands on the person’s head and calls the person by name.
  3. States that the ordinance is performed by the authority of the Melchizedek Priesthood.
  4. States that he is anointing with consecrated oil.
  5. Closes in the name of Jesus Christ.

Sealing the Anointing:

  1. Calls the sick person by name.
  2. States that the ordinance is performed by the authority of the Melchizedek Priesthood.
  3. Seals the anointing.
  4. Pronounces a priesthood blessing as the Spirit directs.
  5. Closes in the name of Jesus Christ.

Source: http://www.lds.org/library/display/0,4945,13-1-1-7,00.html