What is CBD Oil? There are two primary compounds in cannabis plants: delta-9 tetrahydrocannabinol (THC) and cannabidiol (CBD). THC has psychoactive effects (mind high). At the same time, CBD is known for its effects on the body. It doesn’t have any psychoactive effects. The creation of this oil starts with harvesting cannabis plants. Then, CBD is extracted from the plants. There are three commonly used extraction processes, namely CO2, ethanol, and oil extraction. Each manufacturer has its extraction process.