Which types of chilli work for homemade chilli oil? I have seen a restaurant that has chili pepper in the olive oil bottle, it gave the oil a delicious chilli taste. I am planning to do the same at home. 

I wonder how to choose the chilli I will be using. What difference do the different types (jalapeno, red chilli, etc.) have on the finished product? 
I am aware of the safety issues as discussed in this post, they are not part of the question.
You can use any type of chili depending on how spicy you want the oil to be. 
You could use ghost peppers to burn the insides of your mouth, or perhaps use Jalapeno for a more milder heat.

You can use the Scolville Scale to decide which pepper to use. At the end of the day it comes down to your personal preference.