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Scrub jalapenos, trimming off the stem. Set aside. Into a large, deep heavy pot, pour 1/2 cup oil (enough to coat the bottom of pot). Heat oil until almost smoking, then turn off or reduce the heat. Add onions, garlic, and carrots. Stir only until onions are clear, don't brown any of the vegetables. Add oregano, bay leaves and salt and stir to mix. Add vinegar and water and bring to a boil, stirring often. Continue to boil and stir until salt is dissolved, then add remaining 1-1/2 cups oil and return to a boil. Stir in jalapenos and remove from heat. Fill 16-20 hot, sterilized 1-pint jars (or 8-10 1-quart jars) leaving 1-1/2 inches of head space. Wipe rims clean with boiling water, then seal jars tightly with canning lids and rings. Cool jars at room temperature out of drafts. Store in a cool, dry place until ready to use.
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