glenn, the squirt of oil you place on the drill can not quench the metal (to do this would require taking the metal from above critical temp, to below in a very short space of time).
A cutting oils purpose is to prevent the swarf / cuttings sticking to the cutting tool .
This should not be confused with a flood coolant (water souluable oil) which main purpose is to keep the cutting tool cool. (you can use plain water, but everything rusts!)
The main problem when drilling carbon steels is running the tool too fast, bad quality tools and poor grind geometry (and insufficent feed pressure when drilling, so the tool rubs instread of cuts)
Stainless steels will work harden (one of the metalurgists will know why, I dont
