To the OP your profile says that you have a 7MGTE but for the model year it says you don't have one indicating this is in a different chassis. A search for your name indicates that your part of the 240sx community.
So the first question is what vehicle is this engine in. And if it is not a MKIII are you sure the gauge is compatible with the sender.
Clearly if you have no oil pressure you do not want to run the engine. The best thing you can do hook up a test gauge, pull the efi fuse, pull the spark plugs. Then turn the engine over for 10 sec, if you do not see pressure by then, something is wrong with the oil pump system and need to be diagnosed.
To answer your first question, as the oil squirters age the pressure at which they open does lower, due to tired springs, however they do not flow enough while open to completely kill the pressure.