The illegal cannabis market in Oklahoma has ballooned to billions of dollars, according to recent data from the Texoma High Intensity Drug Trafficking Area and the Oklahoma Bureau of Narcotics.
According to Donnie Anderson, director of the bureau, the state’s tracking system missed about 70 million pounds of cannabis between March last year and this year, which is roughly 30 times more than what is required to meet the demand of the state’s 300,000 registered medical cannabis patients. This is a sharp rise from the 22 million pounds unaccounted for between 2022 and 2023, showing a nearly threefold increase in just two years.
Despite ongoing enforcement efforts, Oklahoma’s underground cannabis trade continues to grow. A state official suggested that the rising numbers may not indicate a spike in production but rather improved compliance with reporting requirements due to stricter oversight.
The newly released report, commissioned by U.S. Senator James Lankford, links the surplus production to unlawful operations run by Chinese criminal networks.
During a press conference on Friday, officials stressed the need for stricter legislative action. Anderson recommended that lawmakers conduct a formal investigation to ascertain the state’s actual medical cannabis needs and establish production limits accordingly. Unlike most states, Oklahoma does not cap the amount of cannabis growers can produce, contributing to unchecked growth.
However, not all state leaders share this viewpoint. Lonnie Paxton, the state Senate President Pro Tempore, stated in February that law enforcement already has the necessary resources to handle the issue and does not believe additional legislation is required.
Under Oklahoma cannabis law, every marijuana plant must be tagged for tracking purposes. Authorities explain that illegal growers often tag plants initially to appear compliant but later remove these tags before diverting the product to unregulated markets. To estimate the volume of marijuana entering the illegal market, officials analyze tracking data and production assumptions.
Prices in the illicit market fluctuate but typically range between $1,800 and $3,500 per pound. Based on these estimates, the diverted cannabis supply could range from $126 billion to $245 billion. For perspective, the state oil sector generated about $55.5 billion in 2023.
The report also outlines significant concerns beyond financial losses. Illegal marijuana operations have led to extensive human trafficking, potential national security threats, and environmental damage. Thousands of foreign workers have been subjected to abuse and exploitation on these farms, and some individuals involved in the state’s cannabis industry have connections to Chinese government-linked activities within the United States.
Licensed cannabis firms like Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) have long had concerns about the disruptive and risky effects of the continued existence of black market marijuana. They are therefore likely to support every undertaking taken to curb illicit marijuana proliferation not just in legal markets but in all communities.
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