Homeschool Curriculum & Child Learning

16 Year old Son has been smoking pot and found pot in his bedroom? HELP

My 16 year old son within the last number of months has been telling my husband and I how great pot is. To make a long story short, we found pot in his bedroom and confronted him. He was perfectly honest with us. He said he smokes at his friends homes and that all his friends smoke and drink at parties. He says he prefers pot over liquor. We went online together and tried to show him how bad pot can be. He says that we are wrong and that these sites are anti-pot comments. Obviously he is in denial and doesn't want to deal with reality. We have grounded him for a number of months. We also will give him limited funds. He now must ask us for limited money and tell us what he will be using the money for. He seems upset that he got caught parting and now cannot smoke with his friends. I have mixed emotions. I want him to be social, which he has always been. But, I don't want him smoking pot and drinking at parties. Parents always have commented on how nice and respectful my Son is. We are so upset that our perfect boy has turned into this pot head party hardy kind of kid. He makes us feel like he will not have any friends anymore because they all party. We are not sure what to do with him. Any insight someone may have, I would be most grateful!!