Heat the neutral oil in a saucepan over medium heat. Add diced red onion, minced garlic, and diced jalapeno. Sauté until softened and fragrant, about 3-4 minutes.
Stir in the blueberries, ketchup, brown sugar or honey, apple cider vinegar, bourbon whiskey, kosher salt, black pepper, crushed red pepper, bay leaf, and molasses.
Bring the mixture to a simmer, then reduce the heat to low. Let it gently simmer for about 20-25 minutes, stirring occasionally, until the blueberries burst and the sauce thickens to your desired consistency.
If desired, use an immersion blender or transfer the mixture to a blender and puree until smooth. For a chunkier sauce, you can skip this step.
Adjust the seasoning according to taste, adding more salt, pepper, or crushed red pepper if desired.
Once done, remove from heat and let the sauce cool slightly before transferring it to a jar or container.
Serve this BBQ sauce with your favorite grilled meats or use it as a dipping sauce.