Using a saute pan, heat 1 tbsp of olive oil over medium-high heat. Then, toast the rice, stirring frequently to avoid burning.
Blend the onion, garlic, and Rotel in a stand mixture, then set aside.
Make a well in the pan by pushing the rice to the edges. Add another tbsp of olive oil to the center of the pan, turn the heat down to low, and pour in the vegetable mixture. Fry the sauce in the center of the pan for 2-3 minutes, then stir in the toasted rice.
Add the water and salt to the pan and bring to a boil. Once boiling, move the rice to create a ridge in the middle of the pan, then add jalapeno (optional).
Turn stove back down to low, cover the pan, and cook for an additional 20 minutes until all the liquid is absorbed and the rice becomes fluffy.