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Anyone that has been baptized properly can and should be confirmed. Confirmation is another sacrament of initiation that seals in Holy Spirit and anoints the recipient as priest, prophet, and king.
Bishops are the original ministers of Confirmation along with other sacraments (Lumen Gentium 26).
"Bishops are the successors of the apostles. They have received the fullness of the sacrament of Holy Orders. The administration of this sacrament by them demonstrates clearly that its effects is to unite those who receive it more closely to the Church, her apostolic origins, and her mission of bearing witness to Christ."
(Catechism of the Catholic Church 1313)
In the Eastern churches (non-Latin rites) the priest is the ordinary minister of this sacrament and performs it immediately after baptism. However, it is performed with chrism oil that has been consecrated by the bishop expressing the apostolic unity. In the Latin rite (which is the largest of all rites) the bishop is the ordinary minister.
"Like Baptism which it completes, Confirmation is given only once, for it too imprints on the soul an indelible spiritual mark, the 'character,' which is the sign that Jesus Christ has marked a Christian with the seal of his Spirit by clothing him with power from on high so that he may be his witness."
(Catechism of the Catholic Church 1304)
Confirmation is performed with the ordinary minister extending his hand over the one to be confirmed and anointing his/her head with the oil of chrism saying, "be sealed with the Holy Spirit." The actual Confirmation ceremony is much longer than this, but this is the "meat" of the action. The oil of chrism is consecrated by the bishop at the Chrism Mass on Holy Thursday and is reserved for special things like Baptism, Confirmation, Holy Orders, blessing of tower bells, consecration of churches, altars, chalices and patens.
In short it is the full outpouring of the Holy Spirit as once granted to the apostles on the day of Pentecost. Confirmation brings a deepening of baptismal grace and unites us more firmly to Christ. it increases the gifts of the Holy Spirit and leaves and indelible mark on the soul just like baptism.
These gifts are wisdom, understanding, knowledge, fortitude or courage, counsel, piety or love and fear of the Lord.
Anointing with oil is an ancient Biblical tradition originating in the old testament with the Jewish people. The Jews had a messiah and it was usually their king at the time, howver they were also awaiting a greater messiah, one that would deliver them and raise them up. This messiah happened to be Jesus whether some chose to belive it or not. The sign of the Messiah was that he was royal and messiahs were put in their position by being anointed with oil and an appointment from God. This tradition carried on in Christianity with the teaching of the sharing in Christ's messiahship and his royal priesthood. In fact, the first example of Confirmation can be found in Acts 8:14-17.