Well, on pequin chiles, I have a buddy with a very green thumb who grew those, and habaneros, both very hot. The story on pequins is that folks in the southwest, cowboys, etc, would carry them around in their pants pockets and nibble on them all day. I don't know about the bottling thing, but I am completely confused about the question of oil, unless you are talking about making an INFUSED OIL, which is very popular today. You can't be suggesting a SALSA with oil in it, unless you have some really creative recipe in mind. Here's the thing: Making a salsa with pequins is probably more trouble than it's worth. I know most readers are far away from Los Angeles, but I have a latino store here near downtown with an almost incredible variety of hot sauces, all WAY, WAY cheaper than you would think. Huge bottles of hot sauce for about a dollar. Little bottles of habanero sauce for maybe $1.50, you just have to know where to shop.
But, if you are thinking of an infused oil, I'd say go for it. Just dump a bunch of pequins in the olive oil, and give it a few days. Maybe chop them or something, then use one of those pouring things they use on liquor bottles to keep the bugs out, as a strainer.
Speaking of liquor, how about this idea? Forget about the oil, and toss the little bastards into a bottle of vodka? Then start working on drink recipes. I think you could do a pretty nice spicy margarita with that.
-Scott Lindgren email@example.com