(God is in everything.)
"God is in everything (His creation)" requires that all God's creation is embedded with God's Spirit. God is both within and beyond the universe. This would mean that God's Spirit resides in Satan and takes part of God's divinity. This negates the biblical teaching of original sin of unrepentant people, rendering the substitutionary death of Jesus Christ as not necessary.
"Panentheism is essentially a combination of theism (God is the supreme being) and pantheism (God is everything). While pantheism says that God and the universe are coextensive, panentheism claims the God is greater than the universe and that the universe is contained within God. Panentheism holds that God is the "supreme effect" of the universe. God is everything in the universe, but God also is greater the universe. Events and changes in the universe effect and change God. As the universe grows and learns, God also increases in knowledge and being.
"Panentheism is most definitely not biblical. In fact, it is extreme heresy that impugns the character of God and makes Him more like a man. God is present everywhere (Psalm 139:7-8), but God is not everything. God knows everything, whether actual or possible (Psalm 139:1-6; Romans 11:33-35). God does not learn because He already has all knowledge. God is "affected" by things that occur in the universe, but only in that sin angers Him and holiness pleases Him. Our actions do not change God or impact His essential being."
Brierley, Michael W.; Summarized from The Encyclopedia of Christianity, Volume 4 entry on "Panentheism;" Wm. B. Eerdmans Publishing Company (2005)
Summarized from the Got Questions entry on "What is panentheism?"
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