Turbulent drag reduction by polymer additives in a channel is investigated using direct numerical simulation. The dilute polymer solution is expressed with an Oldroyd-B model that shows a linear elastic behaviour. Simulations are carried out by changing the Weissenberg number at the Reynolds numbers of 4000 and 20 000 based on the bulk velocity and channel height. The onset criterion for drag reduction predicted in the present study shows a good agreement with previous theoretical and experimental studies. In addition, the flow statistics such as the r.m.s. velocity fluctuations are also in good agreement with previous experimental observations. The onset mechanism of drag reduction is interpreted based on elastic theory, which is one of the most plausible hypotheses suggested in the past. The transport equations for the kinetic and elastic energy are derived for the first time. It is observed that the polymer stores the elastic energy from the flow very near the wall and then releases it there when the relaxation time is short, showing no drag reduction. However, when the relaxation time is long enough, the elastic energy stored in the very near-wall region is transported to and released in the buffer and log layers, showing a significant amount of drag reduction.