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Ocotillo can live up to 100 years.
If the roots die, say from root rot, it can take months for the entire plant to die.

Here is an article that has more information.

https://www.gardeningknowhow.com/ornamental/cacti-succulents/ocotillo/ocotillo-plant.htm

This tree, like many others, will do this naturally. They will do this several times in their lives, and is not a reason for concern. Here is an article that will help:

https://www.gardeningknowhow.com/ornamental/trees/tgen/peeling-bark-on-trees.htm

The succulent stems produce hundreds of horizontal, non- succulent, secondary branches armed with spines. The succulent stems elongate only in late winter and spring in direct relation to the amount of moisture received. Leaves and secondary branches may sprout any time moisture is available, but the plants are usually leafless and dormant in summer. Do not prune the plant, allow it to grow naturally.

This is a very common occurrence. They will do this when they do not receive enough water. This is not detrimental to the plant, but it does signal that it could use a little more water. This article will give you more information on their care: https://www.gardeningknowhow.com/ornamental/cacti-succulents/ocotillo/ocotillo-plant.htm

It is normal for the ocotillo to turn brown at some times of the year, so it's not necessarily a problem. The stems usually turn green and produce leaves after a rain, so watering more might cause it to green up, but excessive watering can also harm the plant. If it's flowering, it's probably healthy and doesn't need extra water. Here is more information:
http://www.cmazier.com/landscaping-news/ocotillos-in-the-landscape/

This link will help you.
http://homeguides.sfgate.com/propagate-ocotillo-22833.html

https://www.gardeningknowhow.com/ornamental/cacti-succulents/ocotillo/ocotillo-plant.htm