Roast your peanuts in the oven at 350F. This should allow you to shell the peanuts. Don't burn the peanuts, be sure you watch them and make sure they don't burn.

Once the peanuts are roasted (you'll see the skin of the peanut to begin peeling back). Let them cool, now peel them. This will take a while.

Once the peanuts are shelled, put them in a food processor.

Pulse them so they are fine and grounded. Now add your oil and sugar. You'll want to run the food processor if you can tolerate for as long as five minutes. The longer you process them, the smoother the peanut butter is.

This is pure Virginia PB below, I mixed some Valencia into the PB above. Enjoy