1. In a large skillet, heat oil over medium-high. Add shallots, and cook, stirring frequently, until lightly browned, about 5 minutes.

2. Add 1 3/4 cups water, orange zest and juice, vinegar, and sugar; season with salt and pepper. Bring to a boil, and cook over medium heat until most of the liquid has evaporated, shallots are tender enough to be easily pierced with the tip of a knife, and liquid is syrupy, 35 to 40 minutes. (Raise heat to high for a few minutes if shallots are tender but not quite glazed.) Serve.