Heat oil in medium skillet over medium high heat til shimmering. Add butter and swirl in skillet to keep from burning. Add potatoes in single layer.
Reduce heat to medium and sauté potatoes, without stirring til golden brown on edges, 8 to 10 minutes
Stir potatoes, then cook til golden brown, 8 minutes or more, stirring occasionally to brown all sides. Add peppers and sauté til softened, 2 minutes. Season potatoes with salt and black pepper; garnish with chives. Serves 2