What engine should I choose?

Hello all,
I am looking for a physics engine that can properly simulate physics as shown in the simulation of karl sims.


I almost finished my first 2d java program and I want to now move on to 3d.
For the 3d engine I choose to use jmonkey engine, which I have some experience with.
I did some research and jbullet seems a good option for physics, but I could not find any information about the simulation of physics in a water environment like shown in the video.
So what kind of physics engine would you suggest to recreate something like this?