Post History

Sometimes it doesn't matter who said what.  In your example, where everyone has the same goals and is working together, it seems fine to leave most or all of them out -- the focus here is more on the *group discussion* than on *individual speakers*.  This approach wouldn't work in cases where the speakers are less aligned, though, like if three people are arguing with each other and one is trying to calm them down.

You can tag speakers without saying "said" or equivalent.  You've got a wall of dialogue; interspersing small actions can provide the signals you're looking for without bogging down.  Consider this adaptation of your text (my additions are in bold):

> ‘Does it know we’re here?’  **Steve twitched nervously.**

> ‘Well we know it’s there, so I expect so.’ **Sheldon rolled his eyes. *Why is Steve always so illogical?***

> **Kyle squinted.** ‘An animal?’

> ‘What sort of animal moves like that?’  **Caleb tightened his grip on his bow.**

> ‘A fae animal?’

> ‘I doubt it’s fae, **Kyle**. It would use its invisible state. What it’s doing is most inefficient.’

> ‘Should we go back? I mean, what if it’s not friendly?’  **Steve glanced at the path behind them longingly.**

> **Caleb reached for an arrow.** ‘I’m not going back through these accursed demon woods.’

> ‘Nothing’s friendly here, it would be advisable to get used to it. And the woods are neither cursed nor demonic, thank you.’

> **Caleb turned toward Sheldon, contemplating his next shot, but returned his attention to the creature.**

I assumed this was the start of the dialogue.  It's a good idea to establish speakers on their first utterances, somehow.  Let's walk through what I did:

- I've portrayed Steve as nervous -- first he asks what it is, and later he suggests retreat.  

- All of the "know-it-all" passages seemed to be coming from the same person; Sheldon's eye-roll establishes that trait and makes it easier to identify his future utterances.  

- When Kyle asks if it's an animal and Sheldon responds (note I didn't tell you it was Sheldon but you knew, right?), it seems reasonable that the revision of the question ("a fae animal?") would come from the same speaker (Kyle), which is reinforced in Sheldon's response naming him.  (Sheldon seems like the sort who talks down to people, and people who do that sometimes inject people's names much like a parent or teacher does.)  

- I connected Caleb's utterances through his bow; this is safe because if a paragraph combines both dialogue and actions, the actor is expected to be the speaker.  

- In the last paragraph, Caleb turning toward Sheldon reinforces that Sheldon was the previous speaker, even if it wasn't clear from the dialogue.  (If you don't actually want that strife in your group, you could safely leave that part out.)

As I demonstrated here, you can use a combination of associated actions, direct address, and implied speakers (not identifying people if the utterance itself makes it clear) to convey who is speaking without paragraph after paragraph of "so-and-so said".