Is it possible if you dry your skin out from its natural oils for too long, it can leads to irritation?

I use to exfoliate with an exfoliating soap for almost 2 years, daily. (It was VERY drying, but it worked wonders). I had no problems until last year, in September. My skin out-breaked into 2 red rashes. I tried leaving it alone, and just using gentle cleanser during winter time, and it's still hear. I never moisturized my skin still because I dint think it was important to. Went to the dermatologist 3-4 times and they dint say it was any skin disease such as eczema, or anything. Do you think I dried it out its natural oils so much that it's badly irritated and it needs moisture to help recover? If so, how long do u think it'll take to go back to normal, while using aveeno moisture barrier repair cream?