Heat a large sauté pan over medium heat, add the olive oil and heat through. Add the butter and allow to melt, then add the onions.
Sauté until the onions are soft and tender, about 10 minutes, then reduce the heat to medium-low and cook, stirring occasionally, until the onions are uniformly brown and caramelized, about 30 minutes. Stir in the brown sugar then remove from heat and let cool.
In the bowl of a food processor fitted with a blade attachment add the cream cheese, sour cream, caramelized onions, Worcestershire, tabasco onion powder, garlic powder and paprika and continue to mix until combined. Season to taste with salt and pepper.
Add to a container or bowl, cover and refrigerate until chilled, at least 1 hour. Serve with chips, crostini or vegetables. The dip can be stored in the refrigerator in an airtight container for up to 4 days.