“The attribute of being present everywhere, motivated by biblical claims such as Psalm 139:7-9. God’s omnipresence is not defined physically or spatially. Since God is not a spatial or material being, God cannot be physically present at every point in space. Rather, God exercises God’s powers and goodness in all places at every moment. God is spacelessly present everywhere.
“By contrast, pantheism maintains an identification between God and everything else, so it may be said that everything is God and God is everything. Panentheism is the view that God is the soul of the universe. God’s soul enlivens the whole universe as the human soul enlivens the body. The overwhelming majority of the Christian traditions reject both of these views.”
— Kelly James Clark, Richard Lints, James K. A. Smith, 101 Key Terms in Philosophy and Their Importance for Theology, 62.
“Panentheism” is a constructed word composed of the English equivalents of the Greek terms “pan”, meaning all, “en”, meaning in, and “theism”, meaning God. Panentheism understands God and the world to be inter-related with the world being in God and God being in the world. It offers an increasingly popular alternative to traditional theism and pantheism.
Panentheism seeks to avoid both isolating God from the world as traditional theism often does and identifying God with the world as pantheism does. Traditional theistic systems emphasize the difference between God and the world while panentheism stresses God’s active presence in the world. Pantheism emphasizes God’s presence in the world but panentheism maintains the identity and significance of the non-divine.
Anticipations of panentheistic understandings of God have occurred in both philosophical and theological writings throughout history (Hartshorne and Reese 1953; Cooper, 2006). However, a rich diversity of panentheistic understandings has developed in the past two centuries primarily in Christian traditions responding to scientific thought (Clayton and Peacocke 2004).
(Via Stanford Encyclopedia of Philosophy)
In describing the nature of God’s relationship to creation, both His immanence and His transcendence have to kept in balance (or even in tension). Panentheism appears to stress God’s immanence to the detriment of His transcendence. One sees parallels in process theology and open theism to panentheism.