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Heat a medium skillet over medium high heat. Add the oil and chopped bacon into the skillet and cook until crispy, about 6-8 minutes. Use a slotted spoon to remove bacon from the skillet and place on a paper towel to drain.
Add the chopped onion into the skillet with the bacon grease and caramelize for about 10 minutes, or until fully browned and translucent. Remove onion from the skillet and allow to drain/cool.
In a medium bowl, stir together the sour cream, bacon, onion, chives, shredded cheese, and salt and pepper.
Allow to sit in the fridge in an airtight container for at least an hour to fully chill and for flavors to all blend together.
Serve with chips or chopped veggies.