Years ago, when the only teflon tape available, or at least that was for sale around here, was the white tape, I had to use pipe dope on both threads, and the white teflon tape between, to ever get all the leaks out of a 175 psi compressor system. That particular setup is still holding leak free today. The compound probably would have held fine by itself, but I used the tape anyway. My later systems just use the sealant, and are working fine.
I've had better luck with the gray teflon tape lately, on other things, but still use tread sealant when I'm rigging up some new fittings on a compressor.