Tom: I also use Labelle oil. It's handy, and seems to work as well as anything else.
As the others said, never tap with a power tool, at least for consumer-sized taps. If you're tapping bolts for a full-size locomotive, I imagine you'd have to use a powered tap, but for ours, you're almost certain to break them.
The only time I've watched a machinist tap a "large" hole, for a quarter-inch bolt, he did it by hand. He drilled the hole with a bit in a lathe, then put the tap in the lathe, and turned it in by hand, just like we'd use a pin vise.