Oracle has two products that implement Java Platform Standard Edition (Java SE) 7: Java SE Development Kit (JDK) 7 and Java SE Runtime Environment (JRE) 7.
JDK 7 is a superset of JRE 7, and contains everything that is in JRE 7, plus tools such as the compilers and debuggers necessary for developing applets and applications. JRE 7 provides the libraries, the Java Virtual Machine (JVM), and other components to run applets and applications written in the Java programming language. Note that the JRE includes components not required by the Java SE specification, including both standard and non-standard Java components.
The following conceptual diagram illustrates the components of Oracle's Java SE products:
Description of Java Conceptual Diagram