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In a medium saucepan set over medium heat, melt together olive oil and butter. Add rice, onion, and green chilies and stir to coat with oil/butter. Cook, stirring frequently, for about 2 to 3 minutes, until rice is toasted. Don't worry about onion being cooked; it will cook with the rice, and maintain more flavor.
Stir in chicken broth, tomato sauce, chili powder, cumin, garlic salt, oregano, and diced tomatoes (if using). Increase heat to high and bring to a boil, stirring occasionally. Stir well, reduce heat to low, place lid on pot, and cook at a gentle simmer for 20 minutes. If rice is not quite tender or liquid is not absorbed after 20 minutes, replace lid and cook for 2 to 4 minutes longer. Remove from heat, leave covered, and allow to rest for a few minutes. Fluff rice with a fork and serve.