Place olive oil and shallots into a saucepan set to medium heat until translucent (about 5 minutes). Turn down heat if you see browning. Add garlic and cook for 2 additional minutes. Stir occasionally and watch out for browning.
Into the saucepan add the chili powder, cayenne pepper and dry mustard and stir constantly, for one minute.
Add the pinot noir and turn the heat up to high. Bring the pinot noir to a boil and then reduce heat to simmer for about 5 to 7 minute, stirring occasionally. You want the pinot to reduce about 1/4 for flavor intensity.
Add ketchup and bring back up to a simmer again while stirring for about five minutes then remove from heat, let cool and place in a container.
Sauce will thicken when put into fridge. To thin out the sauce add one tablespoon water at a time and stir until desired thickness.For added flavor and savoriness, add: 1 tablespoon Dijon mustard, 1 tablespoon Worcestershire sauce, 1 tablespoon apple cider vinegar, 2 tablespoons brown sugarModified instructions - for more savoriness and heat. Step 4: Add ketchup, Dijon mustard, Worcestershire sauce, apple cider vinegar and brown sugar to the wine and bring to a simmer for about 8 minutes stirring frequently. Remove from heat and place in a container. Yields about 2 cups of sauce.This sauce will last up to two months stored in the refrigerator.